Spike of Solana - fused or lighting.
November proved a stunning month for Solana as it hits lot Month ATH 67$ but it looks semi bullrun over. The price declined and reversed in last two days and looks sellers are rejecting the lower price and preferences is to Hold till glory.
If we look at data of MACD today, it is giving clear indication that sellers are there and price triggering back where it touched again $58.94 with 9% growth then yesterday ( at the time of writing these lines). If purchasers keep momentum and resistance capture the $65 line then we can assume that the rising energy didn't fused. If buyers loose the interest and falls to 45$ bottom resistance then possible price can decline.
Solana's relative strength index RSI showing that it is going to bearish point even the market candles are green. International developments in Argentina, Halving of Bitcoin, approval of ETFs and Christmas are around the corner which possibly can trigger Solana further.
Solana has all the potential and features which investors wants. Just look at the chart of transaction fee only which always prime concern of investors, Solana has Lowest Transaction fee structure and you can spot Solana on the last row of left side.
STP for Solana trended down for last one week but again stands to uptrend. So if strong support continues, definitely the price will lighten future.
Why previous week Solana gets fused? Experts putting three main reasons on it .
Over buying
SEC lawsuit
Longs liquidation
Over buying .
From end of October till 16th of November over bought situation puts pressure came on RSI and correction in rising falls over.
Institutions investment make huge impact because they fired more then $80 millions for buying Solana. These investors hit record on November 16 when open interest teached at $835 millions where previous was $810 millions in end of October 2021. But a strong comeback happens and trend going higher once again.
SEC lawsuit.
Security and exchange commission of USA issued a lawsuit against Kraken on breaching some internal security laws. In same lawsuit SEC marked some cryptocurrency as "security" where Solana was also named. That point made Solana decline and dropped more then 13% in two days.
Longs liquidation.
We all know the both short liquidity and long liquidity are compulsory to keep demand and supply in balance. In case of Solana the longs liquidity increase while short liquidity squeezed which turned in decline sharply.
Conclusion.
It was a short time of a week where the price of Solana dropped by 12% and people started to say that Solana fused but as today's figures lightning up that spike is there and price of Solana hitting back sky top where $100 is next principled target with in November. If the interest keep going and no major hurdle accoured Solana can reach to its ATH in next bullrun which expectedly starting by new year. The trust of investors is back and I am sure golden days are in the way.
That's all for today. Like , thumb up to wow and leave comments for feedback.
Note: The article has been published on Publish0x.
Cheers,
Amjad
