The endurance of Solana bulls [SOL] is being severely tested. Despite three attempts in less than a month to escape the bearish trend, the price continues to struggle, slipping deeper.
Looking at the daily chart, it is 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 strong rally, one might expect long-term HODLers to sell off their holdings of SOL, but surprisingly, that hasn't happened.
Instead, it is the unwavering faith of these long-term investors that is fueling speculation about an upcoming recovery.
However, as SOL has erased most of the gains after the elections, the threat of a deeper correction looms. Even the most steadfast HODLers may soon feel pressure.
It may just be a matter of time before the weight of this bearish trend forces a decision.
Time is running out
From this chart, the winners of the election cycle become clear, as shown by the % change over 30 days.
Just a week after the results were announced, a wave of excitement spread throughout the market, pushing some assets to impressive gains.
Ripple [XRP] stands out as a major winner, surpassing a crucial psychological level with triple-digit gains. More notably, Ripple has surpassed Solana, claiming the position of the 4th largest cryptocurrency by market capitalization.
Clearly, Solana has lagged behind its competitors, but that does not mean all hope is lost.
Speculation surrounding a major recovery is increasing, with some even predicting that SOL could reach a price target of $500 before the end of Q1 next year.
Based on Solana's price action, especially over the past three weeks, it is understandable to view the $500 target as somewhat exaggerated.
However, it cannot be overlooked that Solana's volatility to date has paved the way for significant profits. While caution is needed in making definitive predictions, it is clear that anything can happen.
So, should one invest 'long' in Solana?
The last two weeks have been the most volatile for SOL, with bulls and bears locked in a fierce tug of war. After dropping to $236, the bulls made an impressive rebound, triggering a 5% increase in just three days.
Futures traders have joined the action, pushing Open Interest (OI) to an all-time high of $6.05 billion.
But the rally did not last, and OI dropped to $5.16 billion. So, if you 'long' SOL, be cautious.
Although the current price seems attractive, SOL is still struggling to attract attention like other altcoins are grabbing the spotlight.
However, hope is not entirely lost. Long-term holders are holding firm, and with the right push from major players, a squeeze could reverse the narrative.
With shorts dominating the perpetual market and taking advantage of the weak rally, this could reverse the trend in favor of SOL.
But time is running out. If bulls cannot regain control soon, long-term holders may lose faith, paving the way for a drop below $200—a potential opportunity for strategic buyers to re-enter the market.
