Former BitMEX CEO Arthur Hayes has openly acknowledged his recent purchase of Solana’s SOL cryptocurrency, despite its possible local peak in value.
Hayes remains bullish on the cryptocurrency’s future prospects. This move came after SOL had already experienced a remarkable 500% rebound from its December 2022 low of around $8.
Hayes’ purchase coincided with a prediction by VanEck, an asset management firm overseeing $76.4 billion in assets, forecasting a staggering 10,600% price increase for SOL by 2030.
This prediction was based on Solana’s potential to capture market share from its top competitor, Ethereum.
Furthermore, an analyst from FieryTrading suggested that SOL could see a 150% increase once it breaches the resistance level at $38.
In October 2023, SOL witnessed an impressive 80% price surge, reaching a 14-month high of approximately $46.75.
It appears that Hayes acquired SOL around this same price point, displaying confidence in its continued upward trajectory, possibly influenced by Solana’s ongoing scalability efforts.
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However, caution is warranted as technical and fundamental indicators are signaling the possibility of a 30% price decline in November.
The daily relative strength index (RSI), a momentum indicator, has reached its most overbought levels since January 2023. Historically, such overbought RSI readings have preceded 35% to 50% price corrections throughout 2023.
In the event of a correction, the next support level to watch is near $30.25, which corresponds to the June-November 2022 support level and represents a 30% drop from current prices.
Notably, this level aligns with SOL’s 200-3D exponential moving average (200-3D EMA), denoted by the blue wave in the chart.
A break below this level could lead to a test of SOL’s ascending trendline support, situated near $26, marking a 37.50% decrease from current price levels.
Arthur Hayes’ bullish outlook on Solana remains intact, but the cryptocurrency market’s inherent volatility suggests the possibility of a significant correction in the near future.
SOL investors should monitor these technical and fundamental indicators closely to make informed decisions about their holdings.
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