As a researcher with experience in the crypto market, I’ve closely followed Solana (SOL) and its recent price action. After recovering the crucial support zone of $160, SOL reached new heights and even surpassed its previous all-time high (ATH) in terms of market capitalization. However, despite this impressive feat, some analysts are warning of a potential meltdown for Solana.
Following the latest market surge, Solana (SOL) bounced back and touched a critical support level. The question now among analysts is whether this cryptocurrency will experience a powerful upswing towards a fresh record high (ATH), or if it’s on the verge of collapsing.
Analysts Fear SOL’s Top Is In
Over the past week, Solana bounced back from the $160 support level and reached new heights not witnessed since early April. However, it came up short in its attempt to break through the $190 resistance barrier. Instead, the SOL token fluctuated between the prices of $180 and $170 before reverting back towards the $160 support area over the weekend.
Though it fell short of Bitcoin and Ethereum‘s achievements during this market cycle, Solana’s token managed to set a new all-time high in terms of market capitalization. In March specifically, the cryptocurrency boasted a market value exceeding its past record, amounting to $93 billion.
Last week, the price of SOL experienced a significant increase of more than 56%, surpassing its May 1st retracement level. This growth pushed Sola’s market capitalization above its all-time high (ATH) in 2021, bringing it close to March’s ATH. However, some cryptocurrency analysts have raised concerns that a potential crash could be imminent for Solana.
As a crypto investor, I’ve been closely following the analysis of Bluntz, the well-known crypto expert. In his latest video, he took a deep dive into Solana’s (SOL) macro chart. Based on his assessment, he believes that “SOL has reached its limit and is showing signs of exhaustion. It seems plausible that Ethereum (ETH) may soon follow suit, potentially marking the final surge of the ongoing bull market.”
An expert analysis indicates that the macro chart raises some red flags, implying that the token may have reached its peak based on Solana’s price history. According to Bluntz’s chart, Solana experienced a five-peak climb leading to its cycle high of $210 in March. Although it didn’t hit the new all-time high for price due to inflation, analysts emphasized Solana’s market cap reaching an all-time high as a significant factor.
Additionally, the crypto analyst noted a five-percent decrease from Solana’s peak in March, which was later followed by a three-percent increase. This observation led the analyst to conclude that Solana may be experiencing “fatigue” or difficulty continuing its upward trend.
Based on Bluntz’s analysis, there is a strong possibility that the noteworthy price movement could lead to a “significant lower high.” Furthermore, he predicted that the Solana token (SOL) would fall short of the $100 threshold again.
Is Solana Poised For A Liftoff Or A Meltdown?
Analogously, anonymous cryptocurrency expert Credible issued a cautionary statement about Solana’s future. In Credible’s perspective, “coins such as Solana are currently part of more extensive distribution frameworks.” Nevertheless, Crediblenotes that Bitcoin’s dominance is expected to alleviate some pressure on Solana initially, with the overall market being uplifted by Bitcoin’s strength.
The analyst concurred with Bluntz’s forecast, expressing the viewpoint that this is “the likely outcome in the long run.” However, they also believe there is a strong possibility that Solana will reach new heights above March’s levels “prior to any major price correction.”
Despite the pessimistic views expressed by certain crypto analysts, there are others, such as DocXBT, who hold a more optimistic perspective towards Solana. DocXBT has observed an increase in negative assessments of Solana recently. However, he maintains that the token is adhering to daily trends and exhibits encouraging signs of support and resistance levels.
Additionally, he advises investors not to dwell excessively on their decisions since the current trend’s progress appears very promising.
As a researcher observing the cryptocurrency market, I’ve noticed that Solana (SOL), according to CryptoJelle’s analysis, is exhibiting a “higher low formation” after the recent price breakout. This pattern mirrors Solana’s behavior during the February-March period.
As an analyst, I believe Jelle’s hypothesis holds merit. The token may have reached its lowest point in this market cycle and is now gearing up for a significant price surge towards a new all-time high (ATH). Based on my analysis, I predict the Solana (SOL) token could potentially reach a price of $600 during this cycle.
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2024-05-29 05:14