Former BitMEX CEO Arthur Hayes Admits Buying Solana at Local Top
Arthur Hayes, the former CEO of crypto derivatives exchange BitMEX, has revealed that he bought Solana’s SOL token at its possible local top. Despite acknowledging that it is a “Sam-coin piece of dogshit L1” and just a meme, Hayes expressed his bullish outlook for the cryptocurrency.
SOL’s Impressive Rally
Hayes made this admission after SOL had already surged 500% from its market bottom near $8 in December 2022. The purchase also followed predictions by asset management firm VanEck that SOL could experience a 10,600% price rally by 2030, as it competes with Ethereum.
An analyst from FieryTrading also predicted that if Solana breaks the resistance at $38, it could see another 150% increase. In October 2023 alone, SOL gained 80% and reached a 14-month high of around $46.75, which is likely the price at which Hayes bought the token.
Warning Signs of a Potential Correction
Despite the optimism surrounding SOL’s price, technical and fundamental signals suggest a potential 30% price drop in November. The daily relative strength index (RSI), a momentum indicator, has reached its most overbought levels since January 2023.
Historical data shows that overbought RSI readings often precede corrections of 35%-50%. If this pattern holds true for SOL, it could result in a sharp correction. The next downside target would be around $30.25, a level that coincides with SOL’s 200-3D exponential moving average (EMA).
A break below this level could lead to further downside targets, including the cryptocurrency’s ascending trendline support near $26.
Hot Take: SOL’s Bullish Momentum Faces Potential Correction
Solana’s SOL token has experienced a remarkable rally, attracting the attention of former BitMEX CEO Arthur Hayes. Despite his admission of buying at a possible local top, Hayes remains bullish on SOL’s future prospects.
However, technical and fundamental signals suggest that a correction may be imminent. Overbought RSI levels and historical patterns indicate the potential for a 30% price drop in November.
Investors should closely monitor SOL’s performance and be prepared for potential downside risks as the cryptocurrency navigates through its overbought conditions.
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