Solana $SOL is showing impressive strength right now, trading around $119 and holding onto a solid 23% gain over the past week. From a technical standpoint, the medium-term trend is undeniably bullish, as price is sitting comfortably above all key moving averages with momentum indicators like the MACD flashing green. However, I am keeping a close eye on a few short-term red flags. The RSI is pushing into overbought territory near 78, and buying volume has started to dry up right as we test the $120 local high. On top of that, derivatives data shows top traders are heavily skewed long (over 70%) with positive funding rates, making this a rather crowded trade. For this rally to continue, I want to see a decisive, high-volume breakout past $120. If price stalls here while long positions keep piling in, we could easily see a sharp leverage flush and temporary pullback before moving any higher.
#sol