With the shine of other alternative currencies, Solana is lagging behind, allowing the 'bears' to gain the upper hand.
If the bulls act quickly, the situation could reverse—but timing is everything.
The resilience of Solana [SOL] bulls is being put to the test. Despite three attempts to break out of the downtrend in less than a month, the stock price continues to struggle and decline further.
From the daily chart, it is clear how much the 'Trump rally' has impacted investors, with Solana's stock price hitting 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 strong conviction of these long-term investors has fueled speculation about an impending economic rebound.
However, with SOL having erased most of its post-election gains, the threat of further pullback looms. Even the most steadfast HODLers may soon feel the pressure.
The pressure of this downtrend is forcing 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 30-day percentage change.
Just a week after the results were announced, the market surged with excitement, driving certain assets to substantial gains.
Ripple [XRP] stands out as a big winner, soaring to a key psychological level with triple-digit gains. Even more impressively, it has surpassed Solana to become the fourth-largest cryptocurrency by market cap.
Clearly, Solana has fallen behind its competitors, but that does not mean all hope is lost.
Speculation about a massive rebound is increasing, with some even predicting that SOL could hit a target price of $500 before the end of Q1 next year.
Given Solana's price movements, particularly over the past three weeks, it is understandable to view a $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 is still too early to make any definitive predictions, 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 a fierce tug-of-war. After dropping to $236, the bulls staged an impressive comeback, triggering a 5% increase in just three days.
Futures traders are taking action, pushing open interest (OI) to a historic high of $6.05 billion.
But the rebound did not last long, and OI has fallen to $5.16 billion. So, if you are 'bullish' on SOL, proceed with caution.
Although the current price seems enticing, SOL has 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 key players, a short squeeze may turn the tide.
With bears dominating the perpetual contract market and capitalizing on weak accumulation, this could turn the tide in favor of SOL.
But time is running out. If the bulls cannot establish dominance soon, long-term holders may lose confidence, potentially leading to a price drop below $200—an opportunity for strategic buyers to re-enter the market.