TechFlow reported on October 24, according to CoinDesk, the SOL/ETH spot trading pair on Binance has risen over 15% since October 1, continuing an upward trend seen over the past three months, but currently showing signs of overbought conditions. The 14-day Relative Strength Index (RSI) for this pair has clearly broken above 70, marking the strongest overbought reading since March this year.
Yesterday, driven by renewed activity on the Solana network, the SOL/ETH pair briefly reached a record high of 0.069. Analysts noted that while an RSI above 70 does not necessarily signal the end of a bull market, it indicates that recent gains have been too rapid and may require consolidation. Technically, any potential pullback could find support at 0.064 (August's peak). Notably, some experienced traders argue that prolonged overbought RSI readings on longer timeframes actually reflect strong bullish momentum.
On the other hand, the Bitcoin-to-Gold ratio has started to decline after hitting resistance at the trendline connecting the March and June highs. A MACD death cross suggests BTC may continue to underperform. A similar technical pattern occurred in late July, followed by a prolonged downturn in the ratio.
