The SOL/ETH pair on Binance has extended its impressive winning streak, rising over 15% since October 1. However, technical indicators now suggest the rally may have gone too far, signaling possible short-term corrections.
SOL/ETH Pair Overbought on Strong Solana Momentum
After recording gains for four consecutive months, the SOL/ETH spot pair set a new high of 0.069 ETH on Wednesday. The rise follows a surge in Solana network activity, driving renewed interest in the cryptocurrency. However, the 14-day Relative Strength Index (RSI)—which measures the speed and magnitude of price movements has climbed above 70, indicating overbought conditions.
The RSI is currently at its highest level since March, raising the possibility of a temporary pullback. A correction could see the pair retest support at 0.064, which corresponds to the high reached in August.
While an RSI reading above 70 is often associated with overextended rallies, it doesn’t necessarily mean the uptrend is over. As traders often note, the RSI can remain overbought longer than bears can remain solvent, implying that bullish momentum may still have room to grow.
BTC-Gold Ratio Stuck in a Downtrend
Meanwhile, the BTC-to-gold ratio—which compares Bitcoin’s per-unit price to gold’s per-ounce value—continues to struggle. After failing to break through trendline resistance from the March and June highs, the ratio turned lower, signaling weakness in Bitcoin’s performance relative to gold.
Adding to bearish sentiment, a negative crossover in the Moving Average Convergence Divergence (MACD) indicator suggests further BTC underperformance may lie ahead. A similar setup in July led to a prolonged decline in the ratio, hinting that Bitcoin could remain under pressure in the near term.
As Solana’s rally looks increasingly stretched and Bitcoin’s struggle against gold persists, investors may be bracing for volatility across crypto markets.
