Solana Price Hits Overbought Levels: Expect Shakeout Before Next Leg

Solana's price has reached an overbought level of $101.28, and according to technical analysis, it is likely that a shakeout will occur before the price breaks through the resistance cluster at $107-$115.

The Relative Strength Index (RSI) is above 80, indicating extreme exhaustion levels, while the Moving Average Convergence Divergence (MACD) momentum is dead flat. The price is also pressing against the upper Bollinger Band, leaving little room for further gains before a pullback occurs.

Despite the overbought conditions, smart money remains long on Solana, with a 1.90 ratio of large traders to retail investors. However, this could be a sign that the market is due for a correction, as the engine may be running low on fuel.