Former BitMEX CEO Arthur Hayes Turns Bullish on Solana Despite Potential Price Drop
Summary:
Former BitMEX CEO Arthur Hayes recently purchased SOL, the cryptocurrency of Solana, at a potential local peak. Since December 2022, SOL's price increased by 500%, prompting Hayes's investment. Despite signs of a potential 30% price drop in November, Hayes remains bullish on the cryptocurrency. The article emphasizes the readers' need to conduct their own research when investing due to the associated risks.
Arthur Hayes, ex-chief executive of the BitMEX digital currency exchange, recently confessed to investing in Solana's SOL (SOL) cryptocurrency at a potential local peak, underlining his optimistic stance about the digital asset. He tweeted that he knows SOL, which he affectionately referred to as a "Sam-coin" and a L1, is currently treated as a meme, and its value is on an upward trend, which led to his decision to buy it.
In less than a year, the price of SOL increased by 500%. Hayes' acquisition of SOL happened after it had recovered by 500% from its lowest market rate near $8 in December 2022. This happened not long after asset management company VanEck, which manages $76.4 billion in assets, forecasted that SOL could rise by 10,600% by 2030. They attributed this to Solana's potential to claim a higher market share against its major layer-1 blockchain competitor, Ethereum. Concurrently, a FieryTrading analyst suggested that Solana could see another 150% surge if it surpasses the $38 resistance mark.
Even during October 2023, SOL's price increased by an astounding 80% and recently hit a 14-month peak of roughly $46.75. Hayes seems to have entered the SOL market around this price level, predicting further upward movement for the cryptocurrency, likely influenced by Solana's ongoing development towards scalability.
However, there are some technical and fundamental signs which are indicating a potential price decrease of 30% in November. In recent months, SOL's persistent upward trend has caused its daily relative strength index (RSI) to reach its highest level since January 2023. Technically, an overreached RSI could cause the core assets to correct or stabilize their prices. In SOL’s case, a dramatic price drop in November seems increasingly plausible.
If this bearish outcome occurs, the subsequent downside target seems to be near its June-November 2022 support level of around $30.25, which is approximately 30% less than the current prices. Curiously, this level aligns with SOL’s 200-three-day exponential moving average (200-3D EMA; portrayed as the blue wave in the chart). Should SOL's price fall below this, it could prompt the bearish SOL traders to try and reach the next downside target around $26.
The $26 target, which represents a roughly 37.50% decrease from current price levels, capped SOL's previous attempts at price reduction in June 2022. This piece does not offer investment advice or recommendations. Every investment and trade contain risks, and readers are urged to carry out their own research before making any decisions.
Published At
11/2/2023 2:36:46 PM
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