Solana's Price Surge Triggers Warning Signs as Analysts Split on Next Move

Solana's price has been on a tear, rising from $85.37 to above $102.59 in just over a week. However, analysts are warning that the token may be due for a correction, as it flashes warning signs of exhaustion just below a key psychological level.

The daily Relative Strength Index has climbed to an overbought 79, well past the standard 70 threshold, suggesting SOL may need to cool off before attempting another serious run at $100. The token is also stuck below the $100 resistance zone, which it has repeatedly failed to break through.

Despite this, Solana's rally hasn't happened in isolation. It rode a broader wave of risk-on sentiment across crypto markets, triggered by shifts in U.S. monetary conditions and reinforced by aggressive positioning unwinds. More than $4 billion in crypto short positions were liquidated, generating forced buying pressure.