Solana price is falling, but shorting it is risky, crypto analyst says

The Solana value has fallen two days in a row, falling 7.8% from this week’s excessive.

Solana (SOL), the fourth largest cryptocurrency, fell to $207 on November 13, down from this week’s excessive of $225.

Its retreat mirrored that of Bitcoin (BTC) and different cryptocurrencies akin to Ethereum (ETH) and Cardano (ADA).

Regardless of the sell-off, one analyst believes it’s too dangerous for merchants to brief SOL at present costs. In an X message, Kingpin Cryptoan analyst with greater than 27,000 followers, warned that shorting the coin may very well be dangerous. He cited the truth that Solana got here out of the eight-month buying and selling margin.

Furthermore, Solana maintains strong fundamentals because it has turn into a significant participant within the crypto business. For instance, it has turn into the blockchain of alternative for builders constructing meme cash.

In line with Coin geckothe overall market cap of all Solana meme cash has risen to over $17.8 billion. Dogwifhat has a market cap of $3 billion, whereas Bonk, Peanut the Squirrel and Popcat every have a valuation of greater than $1 billion.

Solana has additionally overtaken Justin Solar’s Tron to turn into the second largest chain within the decentralized finance sector. Are total value locked has risen to greater than $7.58 billion, with the most important gamers within the community being Jito, Kamino, Jupiter and Raydium.

After dominating Ethereum in DEX volumes in October, Solana is repeating the identical development this month. Quantity is up 91% over the previous seven days to $24.55 billion, pushed by a number of common Solana meme cash like Division of Authorities Effectivity and Blissful Coin.

Solana praises to type a break and check once more earlier than roaring again

The every day chart reveals that the SOL value has retreated after rising to $225 on Tuesday. It has remained above the 50- and 200-day transferring averages, which is a bullish signal. Additionally, the MVRVZ indicator has moved sideways after rising to its highest stage since March.

Most significantly, there are indicators that Solana is about to type a break-and-retest sample by transferring in the direction of the important thing assist at $193, the excessive on June 29. A break-and-retest happens when an asset rises above a key stage, retests it, after which resumes the bullish development. If that is true, chances are high good that Solana will recuperate and retest $250 in brief order.