- Solana lags behind while the other alts shine, giving the “shorts” the upper hand.
- If the bulls act quickly, the tide could turn, but timing is everything.
The resilience of the Solana Bulls (SOL) is seriously tested. Despite three attempts in less than a month to break out of a downward trend, the price continues to struggle and continues to fall.
Looking at its daily chart, it’s clear how much the “Trump pump” has impacted investors, pushing Solana to a new all-time high of $264 after three years of stagnation.
After such a powerful rally, one would expect long-term HODLers to cash out their SOL holdings, but surprisingly, this is not the case.
Instead, it’s the unwavering conviction of these long-term investors, which fuels speculation about an imminent rebound.
Yet while SOL has already erased much of its post-election gains, the threat of a deeper retrenchment looms. Even the most loyal HODLers could soon feel the pressure.
It may only be a matter of time before the weight of this downward trend forces a decision.
The clock is ticking
From this chartthe winners of the election cycle are crystal clear, as the 30-day percentage change shows.
Just a week after the results were announced, a wave of euphoria swept the market, pushing some assets towards impressive gains.
Ripple (XRP) stands out as a major winner, surpassing a key psychological level with a triple-digit gain. Even more impressive, it overtook Solana, claiming the fourth largest cryptocurrency by market capitalization.
Clearly, Solana is lagging behind its rivals, but that doesn’t mean all hope is lost.
Speculation The environment around a massive rebound is growing, with some even predicting that SOL could hit a $500 price target before the end of the first quarter of next year.
Given Solana’s price action, especially over the past three weeks, it’s understandable to view the $500 target as somewhat of an exaggeration.
However, we cannot ignore the fact that Solana’s volatility has historically paved the way for significant gains. Although it is too early to make definitive predictions, it is clear that anything is possible.
So, should you go “long” on Solana?
The last three weeks have been some of the most volatile for SOL, with bulls and bears engaged in a fierce tug-of-war. After dropping to $236, the bulls staged an impressive comeback, sparking a 5% rally in just three days.
Futures traders jumped on the action, propelling Open Interest (OI) to a record high of $6.05 billion.
Source: Coinglass
But the recovery did not last and OI has since fallen to $5.16 billion. So if you are “long” on SOL, be careful.
Although the current price may seem tempting, SOL has struggled to attract the same attention while other alternatives steal the spotlight.
Yet hope is not lost. Long-term holders are holding on, and with the right push from major players, a short squeeze could turn things around.
Is your wallet green? Check out the SOL Profit Calculator
With shorts dominating the perpetual market and benefiting from low accumulation, this could reverse the trend in favor of SOL.
But time is running out. If the bulls cannot take charge soon, long-term holders could lose confidence, opening the door to a fall below $200 – a potential opportunity for strategic buyers to re-enter the market.
