With the shine of other alternative currencies, Solana's performance has lagged, giving the advantage to the 'bears'.
If the bulls act quickly, the situation could reverse - but timing is everything.
The resilience of Solana [SOL] bulls is being severely tested. Despite three attempts to break free from the downward trend in less than a month, the stock price continues to struggle and decline further.
From the daily chart, it's clear how much the 'Trump surge' has impacted investors, as Solana's stock price reached a historic high of $264 after three years of stagnation.
After such a strong rebound, one might expect long-term HODLers to cash out their SOL assets, but surprisingly, this is not the case.
Conversely, the steadfast beliefs of these long-term investors have sparked speculation about an imminent economic rebound.
However, with SOL having erased most of its post-election gains, the threat of further retracement looms large. Even the most steadfast HODLers may soon feel the pressure.
The pressure of this downward trend might force decisions, it may just be a matter of time.
The clock is ticking.
From this chart, the winners of the election cycle are clear, as shown by the percentage change over 30 days.
Just a week after the results were announced, the market was swept by a wave of excitement, driving certain assets to significant gains.
Ripple [XRP] has emerged as a big winner, soaring above key psychological levels with triple-digit gains. More impressively, it has surpassed Solana to become the fourth largest cryptocurrency by market cap.
Clearly, Solana has fallen behind its competitors, but that doesn't mean all hope is lost.
Speculation about a large-scale rebound is increasing, with some even predicting that SOL could reach a target price of $500 before the end of the first quarter next year.
Given Solana's price movements, particularly over the past three weeks, it is understandable to view the $500 target as somewhat exaggerated.
However, we cannot ignore the fact that Solana's volatility has historically paved the way for some massive gains. While it's too early to make any definitive predictions now, it is clear that anything is possible.
So, should you 'go long' on Solana?
The past three weeks have been the most volatile for SOL, with bulls and bears locked in an intense tug-of-war. After dropping to $236, the bulls staged an impressive comeback, triggering a 5% rise in just three days.
Futures traders have rushed to act, pushing open interest (OI) to a historic high of $6.05 billion.
But the rebound didn't last long, with OI dropping to $5.16 billion. So, if you are 'bullish' on SOL, proceed with caution.
Although the current price looks enticing, SOL has consistently struggled to attract the same attention as other alternative currencies.
However, hope is not lost. Long-term holders remain steadfast, and with the right push from major players, a short squeeze could reverse the situation.
With bears dominating the perpetual contract market and capitalizing on weak accumulation, this could reverse the situation in favor of SOL.
But time is running out. If the bulls do not take control soon, long-term holders may lose confidence, leading to a price drop below $200 - a potential opportunity for strategic buyers to re-enter the market.