Solana Traders Fall into Bull Trap, Incur Losses
Date: 2023-12-29 Author: Dima Zakharov Categories: BUSINESS
Solana (SOL) traders have fallen into a bull trap, experiencing significant losses as the cryptocurrency's price plummeted to double-digit figures. Technical analyst Duo Nine, known by this pseudonym, has highlighted the dangers faced by those who purchased SOL at prices exceeding $100.
The price surge above $100 turned out to be a bull trap, with hope prevailing as long as the upward trend remains unthreatened. Duo Nine expressed concerns that if SOL follows the example of BONK, a meme token, and its price drops below the trend line, the game could be over.
Many traders believed in the continuation of SOL's price pump and bought coins at prices above $100, only to sell them at a lower cost during a dump. Judging by the substantial trading volume when SOL's price fell from $100 to $96.6, numerous digital asset traders found themselves ensnared.
Duo Nine's published chart shows the ascending trend line currently positioned around $99. A breakthrough of this barrier would indicate a further decline in the cryptocurrency's price towards the next support level at $78. Conversely, if the bulls establish themselves above the resistance barrier at $104, Solana may appreciate to $164.
Since the beginning of the year, SOL has seen a remarkable price increase of 949%, outpacing leading cryptocurrencies like Bitcoin and Ethereum, which have grown by 158% and 97%, respectively. This rapid growth has led to suggestions that a correction could benefit the overheated Solana market.
