Bitcoin proponent Duo Nine has revealed the best time for traders to short Solana (SOL) following the asset’s recent $100 breach.
Solana (SOL) has been one of the hottest cryptocurrencies in the market, surging from around $9.97 in January to over $110 this month, a staggering 1,003% increase. Solana recently breached the $100 threshold for the first time in 20 months.
However, not everyone is bullish on the token. Duo Nine, a seasoned Bitcoin advocate and technical analyst, recently shared his view on SOL on X.
He warned his audience that Solana is due for a major correction, advising them on shortening the coin and profiting from what he believes is an imminent collapse.
Best Time to Short Solana?
Duo Nine said the best time to short Solana is when the percentage of staked SOL starts to decline, indicating that the venture capitalists (VCs) or “smart money” are selling their coins. Notably, market participants have staked about 60% of SOL, with the percentage constantly rising as of press time.
? Here's when you should SHORT Solana and dump on the fanboys. They are an excellent sell signal.
I've been in this space for 10 years & seen it many times:
1️⃣ Track the % of SOL staked and if that % is going up. Wait so long the % increases.
2️⃣ Know that Solana will… pic.twitter.com/VnEh3Yr7TP
— Duo Nine ⚡ YCC (@DU09BTC) December 25, 2023
According to the analyst, when the rate of staked SOL drops, this phenomenon creates a bearish divergence, meaning that the price goes up while the staking percentage goes down.
He also said that the signs of euphoria and FOMO among the retail investors or “dumb money” are excellent sell signals. He cited examples of people claiming that SOL would reach $1,000 or selling their houses for more Solana as indicators of irrational exuberance.
Duo Nine suggested that the best strategy is to sell all SOL holdings on the way up, using dollar-cost averaging (DCA) to exit the market. He cautioned against chasing the price if it goes higher, noting that it is difficult to time the market and FOMO is ill-advised.
The analyst then advised to wait until Solana sees two straight lower highs and lower lows on the weekly chart. Duo Nine stressed that this is the time to look for shorts, significantly if the unstaking percentage is increasing, meaning that more coins are about to be dumped.
Advice Against “Chasing Dogs and Cats”
Duo Nine also warned that most retail buyers do not understand concepts related to cycles, VC behavior, and price momentum and that they should not hold altcoins after the bull market ends. He said that altcoins typically collapse 90% to 99% in a bear market.
He reminded them that Solana crashed 97% in the last bear market, turning $1,000 into $30. The market veteran urged them to take their profits and leave the market.
As a bonus tip, Duo Nine said he is certain that the VCs are engineering the current memecoin mania on Solana, creating illiquid tokens with fake market caps to pump Solana’s price. Notably, Solana-based meme coins, such as BONK, MELON, and ANALOS, have recently hit the spotlight with meteoric surges.
Duo Nine noted that retail investors who jump to the Solana network chasing dogs and cats are just exit liquidity for the VCs. However, this remains speculative, and investors should endeavor to carry out proper research before making any decisions.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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