Is Solana Preparing For Liftoff Or Meltdown? Analysts Forecast SOL’s Future
May 28 2024 - 10:00PM
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After the recent market pump, Solana (SOL) recovered an important
support zone. As a result, analysts have debated whether the
altcoin is poised for a liftoff to a new all-time high (ATH) or
about to face a meltdown. Related Reading: Solana (SOL) Eyes a
Strong Comeback: Will the Rally Ignite a Surge? Analysts Fear SOL’s
Top Is In After recovering the $160 support zone over a week ago,
Solana reached heights not seen since the beginning of April. SOL
neared the $190 resistance level but failed to surpass it. Instead,
the token’s price hovered between the $180 and $170 mark before
returning near the $160 support zone over the weekend. Despite
underperforming compared to Bitcoin (BTC) and Ethereum (ETH), the
token reached a new ATH in a key metric during this cycle. In
March, Solana’s market capitalization surpassed its previous ATH,
reaching a market cap of $93 billion. Last week’s pump saw SOL
surge by over 56% from its price during the May 1 retrace,
propelling its market cap above its 2021 ATH to levels resembling
March’s ATH. Nonetheless, some crypto analysts see the possibility
of a meltdown ahead for Solana. Crypto analyst Bluntz posted a
video looking at SOL’s macro chart. Per the post, the analyst
considers that “SOL is done, SOL is exhausted, and it’s probably
time for ETH to catch up, which will probably be the last leg of
the bull market.” The analyst considers the macro chart to display
some concerning signs that suggest the token has “probably topped.”
Per Bluntz’s chart, SOL had a five-way climb to its cycle high of
$210 in March. Despite not making the price ATH due to inflation,
the analysts highlighted Solana’s market cap ATH as a key factor.
Moreover, the crypto trader pointed out a five-way decline since
March’s highs, followed by a three-way move up. To the analyst,
this suggests that Solana is “exhausted” as it’s starting to
struggle. According to Bluntz, there’s a high chance that the
highlighted performance will result in a “macro lower high.”
Additionally, he forecasted SOL’s price to retrace below the $100
mark. Is Solana Poised For A Liftoff Or A Meltdown? Similarly,
pseudonym analyst Credible issued a warning regarding SOL’s future.
To the analyst, “coins like $SOL are just in larger distribution
structures now.” However, Credible considers that BTC’s strength
will relieve SOL as it initially “drags the whole market up.” The
analyst agreed with Bluntz’s prediction, stating that it is
“ultimately where we are headed,” but considers there’s a good
chance Solana sees highs above March’s mark “before the real
meltdown.” Nonetheless, some crypto analysts disagree with the
gloomy forecast. DocXBT asserted he has “seen a lot of terrible
Solana takes lately.” The analyst believes the token is “holding
daily trends” and displays positive support and resistance levels.
Moreover, he considers that investors should “stop overthinking it”
unless “we lose daily trends” as the performance looks “supper
clean.” Related Reading: Keeping Up With The Memecoins: Caitlyn
Jenner’s New Token Surges 50,000% Amid Controversy On a similar
note, CryptoJelle pointed out that SOL is “forming the
post-breakout higher low.” To the analyst, Solana is following the
same behavior it did during the February-March leg. Ultimately,
Jelle suggests that the token could have found its bottom, and it’s
currently getting ready for liftoff to a new ATH. The analyst
forecasted a $600 price prediction for SOL this cycle. Featured
Image from Unsplash.com, Chart from TradingView.com
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