- Arthur Hayes, former CEO of crypto exchange BitMEX, recently bought SOL near its local top despite calling it a “piece of dogshit L1”. Hayes remains highly bullish on SOL and expects further upside.
- SOL price has rallied 500% in past 11 months. Hayes’ purchase came after bullish SOL forecasts of $10,600 by 2030 and 150% surge past $38 resistance.
- However, SOL is at its most overbought levels since January. Similar overbought conditions have preceded 35-50% corrections throughout 2022. If repeated, SOL could fall 30% to key $30 support or break below to $26 trendline support.
Arthur Hayes, the former CEO of crypto derivatives exchange BitMEX, has revealed that he recently purchased Solana‘s SOL token near its local top. Despite buying SOL close to its peak, Hayes remains highly bullish on the layer-1 blockchain and expects its price to continue rising.
Hayes’ Embarrassing SOL Purchase
Hayes admitted on Twitter that he “just bot SOL”, calling it a “Sam-coin piece of dogshit L1”. However, with SOL prices up 500% in the past 11 months, Hayes justified his purchase by saying “it is going up and Im a degen”.
SOL’s Remarkable Price Resurgence
SOL’s price has rallied an impressive 500% from its December 2022 low of around $8. The purchase came just days after VanEck, an asset management firm overseeing $764 billion in assets, predicted a $10,600 SOL price by 2030. An analyst from FieryTrading also forecasted a 150% SOL price surge once it breaks past resistance at $38.
In October alone, SOL gained 80% to reach its 14-month high around $46.75. Hayes appears to have bought around this local peak, betting on further upside ahead.
SOL Flashes Warning Signs of Imminent Correction
However, SOL’s technicals are signaling it is at its most overbought levels since January. Its daily relative strength index (RSI) suggests a sharp correction could be imminent.
Fractal analysis shows SOL’s overbought RSI readings have preceded 35-50% price drops throughout 2022. If this plays out again, SOL could fall to its June-November support around $30.25, about 30% below current prices.
This key support level aligns with SOL’s 200-day exponential moving average. A decisive break below could have SOL bears target the cryptocurrency’s ascending trendline support near $26 next. This was an instrumental level that capped SOL’s downside in June.
