Is now the time to long Solana?
2024-12-23
Category: None

Solana (SOL) has been the most oversold top altcoin, but its over 30% pullback could be a great buying opportunity per some pundits. 

Since its November peak, SOL has declined from $264 to a low of $175. But the pullback has hit a key confluence area which, if held, could validate Marty’s thesis.

Throughout 2024, SOL’s dumps reversed at the 100-day EMA (Exponential Moving Average, blue). This pattern has repeated in June, July, and October. 

As of this writing, the recent pullback stabilized at the moving average ($175). Interestingly, the level also coincided with the golden level (61.8%) of the Fibonacci retracement tool, as measured from September’s lows. 

In most cases, price trend reversals happen at the golden ratio level. So, if the pattern repeats, SOL could bottom out at $175 with a potential deviation of $160. 

That said, the overall market sentiment was still negative on SOL, which could be ideal for long-term investors eyeing discounted SOL. 