SOL has been under pressure over the past week or so following SEC enforcement actions against Binance and Coinbase, in which both cases the SEC claimed SOL (amongst others) is a security. This led to some exchanges, like Robinhood, delisting the token. However, others haven't (yet) followed suit, nor do I expect them.
These kinds of lawsuits will take years to play out and have scared a lot of people in the short-term. However, Solana remains one of the best altcoins from a risk-reward standpoint and has several unique narratives in favor of it (monolithic chain, only non-EVM chain that unanimously a threat, L2s won't scale ETH, recent network upgrades, etc.). Not to mention, we continue to see all sorts of innovation coming out of the ecosystem that truly is "Only Possible On Solana," or "OPOS" as the community calls it!
That said, there is likely to be plenty more time to accumulate. However, the recent pullback has made for an excellent time to buy if you're sitting on cash.
Things to consider:
• The 14-day RSI is currently at levels last seen when FTX collapsed (Nov. 2022) and when forced selling/tax loss harvesting/liquidations drove SOL sub $8 into year-end (Dec. 2022)
• The near -50% retrace from local high coincides with a bounce off of the golden 0.618 Fib retracement level
• Look at the way back to when SOL first started trading and draw a support line. You'll see the latest move to sub $13 coincided with a backtest of said support.
These kinds of lawsuits will take years to play out and have scared a lot of people in the short-term. However, Solana remains one of the best altcoins from a risk-reward standpoint and has several unique narratives in favor of it (monolithic chain, only non-EVM chain that unanimously a threat, L2s won't scale ETH, recent network upgrades, etc.). Not to mention, we continue to see all sorts of innovation coming out of the ecosystem that truly is "Only Possible On Solana," or "OPOS" as the community calls it!
That said, there is likely to be plenty more time to accumulate. However, the recent pullback has made for an excellent time to buy if you're sitting on cash.
Things to consider:
• The 14-day RSI is currently at levels last seen when FTX collapsed (Nov. 2022) and when forced selling/tax loss harvesting/liquidations drove SOL sub $8 into year-end (Dec. 2022)
• The near -50% retrace from local high coincides with a bounce off of the golden 0.618 Fib retracement level
• Look at the way back to when SOL first started trading and draw a support line. You'll see the latest move to sub $13 coincided with a backtest of said support.