Arthur Hayes, the previous CEO of crypto derivatives alternate BitMEX, has “admitted” to purchasing Solana’s SOL (SOL) at its doable native prime, stressing his bullish outlook for the cryptocurrency.
Fam I’ve one thing embarrassing I need to admit.
I simply bot $SOL, I do know its a Sam-coin piece of dogshit L1 that at this level is only a meme. However it’s going up, and I am a degen.
Let’s Fucking Go!
— Arthur Hayes (@CryptoHayes) November 2, 2023
SOL’s value has rallied 500% in 11 months
Hayes’ self-admitted SOL buy occurred after it had already rebounded 500% from its market backside close to $8 in December 2022.
As well as, the acquisition got here days after VanEck, an asset administration agency supervising $76.4 billion value of belongings, predicted a ten,600% SOL value rally by 2030, citing Solana’s capability to seize the market share of its prime layer-1 blockchain rival, Ethereum.
As well as, an analyst from FieryTrading predicted that when Solana breaks the resistance at $38, it could possibly be headed for one more 150% enhance.
In October 2023 alone, SOL value gained a formidable 80% and lately reached its 14-month excessive of round $46.75.
Hayes appeared to have purchased SOL across the identical $46.75 stage. He expects the value to proceed rising within the coming weeks, maybe drawing his “degen” cues from Solana’s ongoing scalability efforts.
Solana most “overbought” since January
Nevertheless, technical and elementary indicators are warning of a possible 30% value drop in November.
Notably, SOL’s relentless uptrend in current months has pushed its every day relative power index (RSI), a momentum indicator, to its most overbought ranges since January 2023. From a technical standpoint, overbought RSI readings immediate the underlying belongings to appropriate or consolidate.
In SOL’s case, the opportunity of present process a pointy correction in November appears extra seemingly. That’s primarily as a result of a fractal evaluation, which exhibits SOL’s overbought RSIs previous 35%–50% value corrections all through 2023, as proven beneath.
If this bear state of affairs occurs, the following draw back goal seems to be round its June–November 2022 help stage close to $30.25, down about 30% from present costs.
Apparently, this stage coincides with SOL’s 200-3D exponential transferring common (200-3D EMA; the blue wave within the chart above). A break beneath it may have SOL bears check the cryptocurrency’s ascending trendline help close to $26 as their subsequent draw back goal.
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The $26 goal, down about 37.50% from present value ranges, was instrumental in capping SOL’s draw back makes an attempt in June 2022.
This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a call.