Former BitMEX CEO, Arthur Hayes, has revealed his recent purchase of the cryptocurrency Solana's SOL, despite buying in at what could be its local peak. Hayes remains bullish on the cryptocurrency's long-term prospects as the market continues its recovery.

Hayes made the decision to buy SOL after it had already experienced a remarkable 500% rebound from its market low of $8 in December 2022. This purchase coincided with asset management firm VanEck's prediction of a staggering 10,600% price rally for SOL by 2030, citing Solana's potential to capture a larger share of the market compared to Ethereum.

An analyst from FieryTrading also predicts further growth for Solana, suggesting a potential 150% increase once the cryptocurrency breaks through the resistance level at $38.

In recent months alone, SOL has witnessed significant gains, with its price rising by an impressive 80% in October 2023 and reaching a 14-month high of around $46.75. Hayes appears to have entered the market at this level, anticipating continued price growth in the near future, possibly influenced by Solana's ongoing efforts to improve scalability.

Despite the positive momentum, technical and fundamental indicators warn of a potential 30% price drop in November. The daily relative strength index (RSI) for SOL, which measures momentum, is currently at its most overbought level since January 2023. Historically, overbought RSI readings have been followed by corrective or consolidative movements in the underlying asset's price.

Based on fractal analysis, previous instances of SOL's overbought RSI have preceded 35%-50% price corrections throughout 2023. This suggests a likelihood of a sharp correction for SOL in November. If this occurs, the next support level to watch is around $30.25, which held firm from June to November 2022, indicating a potential 30% decline from the current price.

Interestingly, this support level aligns with SOL's 200-3D exponential moving average (EMA), emphasizing its significance. A break below this level could see bears testing the cryptocurrency's ascending trendline support at around $26, representing a further downside potential of 37.50% from current price levels. This level played a crucial role in limiting SOL's declines in June 2022.

While Arthur Hayes may face short-term losses on his SOL buy-in, he remains optimistic about its long-term prospects, supported by the favorable market conditions and the potential for Solana to gain market share against Ethereum. It remains to be seen how the coming weeks will unfold for SOL and whether Hayes's "degen" cues from Solana's scalability efforts will prove fruitful.