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Solana Price Prediction As Rug Pull Fears Mount, Time To Sell SOL?

10 months ago
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Solana price prediction: SOL breaks out to $125 for the first time since April 2022, triggering fears of an incoming rug pull in 2024.

Published 8 hours ago

Solana price prediction: Investors are considering booking profits amid Solana’s massive rally to $125, hitting a 20-month high on December 25. The persistent pumping has left many market participants in shock, but if SOL does not secure higher support, selling activities could result in a sudden sell-off.

Solana Price Prediction: SOL Takes A Breather After Hitting $125

Following a 1.8% decline in 24 hours, Solana price is trading at $112 on Tuesday during US business hours.

The Relative Strength Index (RSI) reveals that buyers have the upper hand. However, due to the highly overbought conditions with the RSI holding at 87, a trend change could follow, leading to more losses towards $100.

Some investors fear Solana could dump massively due to a rug pull scenario, where large-volume investors sell to cash out. Investor Max Keiser said via X that “the rug pull has begun” after Solana dropped 10.5% in 24 hours to $110.

He added that while SOL might keep rallying, there’s a high chance of “holders getting rug-pulled in 2024.”

Higher support is anticipated at $110, as bulls push to resume complete control over the direction Solana is likely to take next. Realize that the Moving Average Convergence Divergence (MACD) indicator currently backs the bullish theory.

Traders can confidently consider keeping their long positions open as long as the blue MACD line holds above the red signal line. To be on the safe side, the momentum indicator should generally move upwards.

It is worth mentioning that Solana for the first time recently formed a weekly golden cross. This bullish crossover reinforcing the bullish thesis in SOL, occurred when the 20-week Exponential Moving Average (EMA) (in blue) flipped over the 50-week EMA (in red).

Solana price prediction chartSolana price prediction chart
Solana price chart | Tradingview

The Fibonacci retracement ratio shows that Solana price has already achieved its 61.8% upswing from the $8 low in December 2022 to the current market value of $112.

Therefore, those facing uncertainty over the uptrend’s continuation may want to exit their long positions, possibly to buy SOL again in case it drops towards $100.

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For traders who have a higher risk appetite, holding on until the stalemate between the bears and bulls resolves itself for potential gains towards $130 and $150, respectively.

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John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Source: https://coingape.com/markets/solana-price-prediction-as-rug-pull-fears-mount-time-to-sell-sol/