Capitulation in the horizon for SOL

This case presents an interesting opportunity for analysis. There has been a lot of uncertainty and speculation surrounding SOL and FTX. However, based on chart analysis, it appears that the completion of the fifth wave down may be imminent. Additionally, we are approaching important Fibonacci levels, as shown in the chart below.

Now, let's examine some noteworthy on-chain metrics:

SOL has been the second most mentioned cryptocurrency in the last day, after BTC. This can often signal extreme sentiment, potentially indicating a top or a bottom.

The Social Volume metric also confirms the presence of uncertainty around SOL. During the previous significant drop and local bottom, we also saw high social volume.

One key difference between this drop and the previous one is that traders seem to be exhibiting more caution this time and are not showing high levels of bearish sentiment. This could potentially indicate that traders and especially short sellers have already capitulated, meaning that they have given up on their bearish positions and are no longer actively trying to profit from a decline in the price of the asset. This lack of bearish activity could be a sign that the selling pressure has been exhausted, and the asset may be poised for a rebound

While it is always important to exercise caution, SOL price in the region of 9-10usd could be a great area for long-term position building.

Diversification is an important consideration, as it can help reduce the risk of loss by spreading investments across a variety of assets.

Cheers!