Solana Price Prediction As Rug Pull Fears Mount, Time To Sell SOL?
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.”
The rug pull has begun, anon. 😂😂😂 https://t.co/fG6iKiho8p pic.twitter.com/tB3sUrHvFB
— Max Keiser (@maxkeiser) December 26, 2023
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).
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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