Solana's relative strength index has dipped to 29.38, pushing the token into oversold territory — a technical condition that traders often view as a potential reversal signal. The reading comes as 78% of whale positions on the network remain long, suggesting big holders aren't backing away despite the price slide. Analysts tracking the asset see a 65% chance of a year-end rally to $85, but only if the $63.97 support level holds firm.
Oversold Signal Flashes
The RSI, a momentum oscillator that measures the speed and magnitude of recent price changes, dropped below the 30 threshold that marks oversold conditions. For Solana, that's the lowest reading in recent weeks. Traders typically interpret such levels as a sign that selling pressure has been exhausted and a bounce could be near. But the indicator alone doesn't guarantee a reversal — it just flags the setup.
Whale Sentiment Remains Bullish
While the broader market has seen choppy action, Solana's largest holders aren't trimming their positions. Data shows 78% of whale accounts are still net long, a level that reflects aggressive bullish conviction. That's a stark contrast to the general retail sentiment, which has turned cautious as the token struggles to hold above $65. Whales, often considered smart money in crypto, are betting the dip is temporary.
Key Support Level in Focus
The $63.97 mark has become the line in the sand. If Solana can defend that support, the probability of a recovery toward $85 by the end of the year jumps to 65%, according to the analysis. A break below that level, however, could trigger further selling and invalidate the bullish thesis. The next few days of trading will tell whether the oversold RSI and whale confidence are enough to stop the slide.
