Solana Soars, but Technicals Hint at 40% Price Dive in 2024: Should You Hold?

Solana’s rally might be running out of fuel. After a stunning climb from $55 to near $91, the red-hot crypto is facing technical hurdles that could trigger a 40% nosedive by January. Is this just a temporary turbulence patch, or a warning sign of a bigger storm?

Technical Indicators Raise Concerns

While Solana continues its upward trend, the Relative Strength Index (RSI) on its three-day chart shows signs of weakening. As its price hits new highs, the RSI has dipped from $99 to about $91.30, indicating a potential bearish turn.

Adding to the concern, the three-day trading volumes for SOL have decreased even as its price has risen. This suggests that the current bullish trend might be losing steam, hinting at a possible market shift.

Key Price Levels to Watch

The recent stable trading around $91 corresponds with the 0.236 Fibonacci retracement level from Q1 2022. If the current divergence patterns continue, Solana could face a notable correction, possibly dropping to around $62 by January 2024.

Also Read: Top Crypto Performers of 2023 REVEALED (It’s Not What You Think!)

Key Investment Shift

In an unexpected move, BitMEX founder Arthur Hayes has shifted his investment focus from Solana to Ethereum. Hayes cited a unique “message” he received during meditation as his reason for moving away from Solana and increasing his Ethereum holdings. He even referred to Ethereum’s co-founder, Vitalik Buterin, as “Archangel Vitalik.”

Following this spiritual insight, Hayes sold his Solana assets and made a bold prediction, foreseeing Ethereum’s price potentially reaching $5,000.

The timing of Hayes’s strategic move adds a layer of intrigue to the ongoing narrative, aligning with Solana’s remarkable surge in the market. SOL has recently climbed toward the $100 milestone, surpassing XRP and securing the 4th spot in the cryptocurrency rankings.

Read More: Solana Flips XRP And Records A 20-Month High! SOL Price To Achieve $100 This Week?