Hey folks, diving deep into the SOL charts this morning and I'm noticing some interesting bullish divergence on the Relative Strength Index (RSI) on the 4-hour timeframe.
While the price has been making lower lows over the past couple of days, the RSI has been putting in higher lows. This is a classic sign that the selling momentum is weakening, and we could be looking at a potential reversal or at least a significant bounce from current levels.
Here's a quick breakdown of what I'm seeing:
- Price Action: SOL has dipped from its recent highs, failing to hold above the $180 mark and now testing support around $165. We've seen a series of lower lows on the H4 chart.
- RSI: Despite the lower price lows, the RSI indicator has consistently made higher lows. This indicates decreasing bearish pressure.
- Volume: Still need to see a significant increase in volume on a potential upward move to confirm this divergence, but the setup is definitely there.
I've set some alerts around the $160 level. If we see a bounce accompanied by increasing volume, I'll be looking to enter a small long position, targeting the previous resistance levels around $175-$180. Of course, this is just my observation and not financial advice. Always do your own research (DYOR) and manage your risk!
Anyone else seeing this on SOL, or have a different take on the indicators? Let's discuss!