Arthur Hayes, the former CEO of cryptocurrency derivatives exchange BitMEX, “admitted” buying Solana’s SOL (SOL) when it was likely at its highest local price and emphasized his bullish outlook on the cryptocurrency.
I have to admit, I have some embarrassing things going on.
I’m just a robot $SOL, I know it’s a sam coin shit L1, just a meme at this point. But it was rising, and I was a regressor.
Let’s fucking go!
— Arthur Hayes (@CryptoHayes) November 2, 2023
SOL price rises 500% in 11 months
Hayes admitted to buying SOL after it had rebounded 500% from a market bottom near $8 in December 2022.
Additionally, the acquisition comes just days after asset manager VanEck oversees $76.4 billion. SOL prices are predicted to rise 10,600% by 2030, citing Solana’s ability to capture market share from its top layer-1 blockchain rival Ethereum.
Additionally, analysts from FieryTrading expected Once Solana breaks the $38 resistance, it could rise another 150%.
In October 2023 alone, SOL prices increased by 80%, recently reaching a 14-month high of around $46.75.
Hayes appears to have purchased SOL at around the $46.75 level. He expects prices to continue to rise in the coming weeks, which could be a “degradation” clue from Solana’s continued scalability efforts.
Solana most ‘overbought’ since January
However, technical and fundamental signals warn that prices could fall by 30% in November.
Notably, SOL’s ongoing upward trend in recent months has pushed its daily relative strength index (RSI), a momentum indicator, to its highest overbought level since January 2023. From a technical perspective, overbought RSI readings prompt the underlying asset to correct or consolidate.
As far as SOL is concerned, the likelihood of a sharp correction in November looks greater. This is primarily due to fractal analysis, which shows SOL has an overbought RSI of 35%–50% ahead of a price correction in 2023, as shown below.
If this bear scenario plays out, the next downside target appears to be the June-November 2022 support near $30.25, a drop of about 30% from current prices.
Interestingly, this level is consistent with SOL’s 200-3D Exponential Moving Average (200-3D EMA; blue wave in the chart above). If this level is broken, SOL bears may test the cryptocurrency’s ascending trendline support near $26 and target it as the next downside target.
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The $26 price target represents a decrease of approximately 37.50% from current price levels, helping to limit SOL’s downside attempts in June 2022.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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