‘I bought Solna’ – Arthur Hayes After Solana’s price returned 500%
Arthur Hayes, the former CEO of the crypto derivatives exchange BitMEX, has “admitted” to buy Solana SOL (SOL) at the top of its possible area, emphasizing the bullish view of the cryptocurrency.
Fam I have a shame to admit.
I just bot $ SOL, I know its a piece of Sam-coin dogshit L1 is just a meme at this point. But it's coming up, and I'm down.
Let's go!
— Arthur Hayes (@CryptoHayes) November 2, 2023
SOL price increased 500% in 11 months.
Hayes' own purchase of SOL comes after it rebounded 500% from a market bottom near $8 in December 2022.
The purchase also comes days after VanEck, which manages $76.4 billion in assets, predicted a 10,600% rally in SOL's price by 2030, citing Solana's ability to capture market share from top layer-1 blockchain rival Ethereum.
Additionally, the FieryTrading analyst predicted that once Solana breaks the resistance at $38, it could rise another 150%.
In October 2023 alone, SOL's price gained an impressive 80% and recently hit a 14-month high of $46.75.
Hayes seems to have bought SOL at the same $46.75 level. He expects the price to rise in the coming weeks, perhaps drawing his “degen” cues from Solana's continued growth efforts.
Solana has been “overbought” since January.
However, technical and fundamental signals are warning of a 30% drop in prices in November.
Notably, SOL's steady rise in recent months has pushed the daily Relative Strength Index (RSI) to its most overbought level since January 2023. From a technical perspective, overbought RSI readings have prompted underlying assets to correct or consolidate.
In the case of SOL, the chances of a sharp correction in November seem more likely. That's mainly due to segmentation analysis, which shows SOL's overbought RSIs ahead of 35%–50% price corrections in 2023, as shown below.
If this bearish scenario occurs, the next downside target seems to be the June-November 2022 support level around $30.25, a 30% drop from the current price.
Interestingly, this level coincides with the SOL 200-3D Exponential Moving Average (200-3D EMA; the blue wave on the chart above). A break below it SOL bears may test the cryptocurrency's rising trendline support near $26 as their next weak target.
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The $26 target, a 37.50% drop from the current price level, was instrumental in anticipating SOL's June 2022 weakness tests.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
