Solana has seen a significant wave of profit-taking since reaching its all-time high of $295.83 on January 19. This has driven its price to multi-month lows, with the coin currently trading at levels last seen in October. 

However, on-chain data and key technical indicators suggest a recovery could be on the way.

Solana Hits Capitulation Phase—What’s Next for SOL?

An assessment of the SOL/USD one-day chart shows that the coin’s Relative Strength Index (RSI) has dropped below the 30 level for the first time since June 2023. This means that SOL has become extremely oversold, indicating that selling pressure may be exhausted and a price correction could be underway. 

When an asset’s RSI falls below 30, it is deemed oversold. This often signals a potential reversal or price rebound as traders seek buying opportunities at price lows. Historically, such oversold conditions have preceded sharp rebounds.

Hence, SOL might be primed for a rally if market participants interpret this as a buy signal and increase their coin accumulation.

Another indicator of a potential short-term rebound in SOL’s price is its poor market sentiment. In a post on X, popular crypto analyst Miles Deutscher states that the altcoin is experiencing extreme bearish sentiment, the worst it has been in over a year since it first regained the $100 price level.

According to Deutscher, “after being a top performer for so long,” SOL is “finally having its capitulation moment.” Capitulation refers to a phase where investors, exhausted by prolonged losses, begin to sell off their holdings in panic or frustration, often marking a market bottom.

This is because once the “paper hands” sell out, the selling pressure in the SOL market eases up, paving the way for a rebound if buyers interested in acquiring the coin at low prices step in. 

SOL Hovers Near Key Support—Will Bulls Push It to $200?

SOL trades at $141.67 at press time, resting slightly above the support level of $136.62. If the altcoin witnesses a resurgence in buying pressure, this support level will strengthen, propelling SOL’s price toward $182.31, where a major resistance lies. 

A successful breach of this level could send the coin’s price above $200 to exchange hands at $222.14. 

On the other hand, if the downtrend continues, SOL’s price could fall to $120.72. 

The United States has extradited Aleksei Andriunin, the 26-year-old CEO and founder of Gotbit, a crypto market-making firm, from Portugal. 

A Russian national, Andriunin, now faces serious charges, including wire fraud, market manipulation, and conspiracy. A federal grand jury in Boston indicted him.

The US Attorney’s Office for the District of Massachusetts confirmed his extradition on February 26. This marked a significant development in a multinational crackdown on cryptocurrency fraud.

“It is alleged that between 2018 and 2024, Gotbit provided market manipulation services to create artificial trading volume for multiple cryptocurrency companies, including companies located in the United States,” the press release read.

Court filings reveal that Andriunin openly acknowledged in a 2019 interview that he had engineered a code to execute “wash trades.” Wash trading is a practice where a trader buys and sells the same asset or security in a short period, creating a false appearance of high trading volume and liquidity.

“Andriunin allegedly kept records of Gotbit’s market manipulation, including spreadsheets that compared “Created Volume” from wash trades with naturally occurring “Market Volume,” the indictment statement noted.

Prosecutors allege this deceptive practice was a cornerstone of Gotbit’s strategy to attract clients. The clients paid steep fees for what they believed was legitimate market support.

Further allegations suggest that Andriunin redirected millions of dollars in illicit proceeds from Gotbit to his personal account on the crypto exchange Binance.

Meanwhile, this case is part of a larger international operation to combat crypto fraud. The Federal Bureau of Investigation (FBI) led it under the name “Operation Token Mirrors.” As part of the investigation, FBI agents created a fake token named NexFundAI to trap manipulators.

The US intelligence service seized more than $25 million in cryptocurrency assets and shut down several trading bots. These bots were associated with around 60 tokens used to manipulate trading volumes and deceive investors.

Legal actions commenced with an indictment unsealed on October 9, 2024. The indictment charged 18 individuals and entities, with Gotbit and its two directors, Fedor Kedrov and Qawi Jalili, among those named.

Additionally, a superseding indictment on October 31, 2024, provided further details about Andriunin’s role. The indictment accused him of masterminding the conspiracy.

If found guilty, Andriunin could be sentenced to up to 20 years for wire fraud. He could also receive an additional five years for conspiracy to manipulate the market and commit wire fraud.

Each charge also carries potential fines of up to $250,000 or double the financial damage caused, along with supervised release, restitution, and asset forfeiture.

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