As a crypto investor with some experience under my belt, I’ve seen my fair share of market corrections. Solana, one of the top altcoins, has been no exception, experiencing a significant downturn following the broader market sell-off. While it’s disheartening to see the value of my SOL holdings decrease, I remain cautiously optimistic based on Raol Pal’s analysis.
Solana, a leading altcoin that has followed in the footsteps of Ethereum and BNB Chain, has experienced a downturn during the recent market correction. Having peaked at $210 in the first quarter of 2024, the coin now grapples with significant resistance as it descends, mirroring the trend set by Bitcoin and Ethereum.
Amidst the significant downturn in the market, Raoul Pal, a macro analyst, believes that Solana presents an excellent opportunity for investors and traders. In his post on X, Pal suggested that traders should consider purchasing the coin based on the daily chart’s candlestick pattern.
Observing the SOLUSDT price chart, it’s evident that the coin has been trading laterally within a larger flag pattern following its surge past $200 in March. Notably, the range between $120 and $125 serves as a potential support area to keep an eye on.
Currently, the price of SOL is being traded at around $130, representing a decline of roughly 40% from its peak in March 2024. Should bears persist beyond May 2024, it will be intriguing to observe how the market responds at this price point.
Based on Pal’s perspective, the analyst anticipates that prices will recover from their current level and continue the upward trend that began last year. However, it’s important to note that there’s no assurance that prices will surge significantly from this support area.
As a researcher, I would interpret a close above $190 on the chart as a potential sign of the market’s readiness to continue its upward trend. Reaching this level could effectively silence the bears and pave the way for further gains.
On-Chain Activity Shrinking As Ethereum Set For More Institutional Support
It’s uncertain if things will work out for SOL within the next few weeks or even months. The performance of SOL is heavily influenced by market trends and on-chain actions, along with other variables.
Despite the growing popularity of Solana among meme coin creators, there’s been a noticeable decrease in on-chain actions lately. On the other hand, Ethereum’s layer-2 solutions such as Base, Arbitrum, and Optimism seem to be gaining traction.
Solana offers higher scalability than Ethereum, meaning transaction fees are low. When on-chain activity drops relative to other cheaper platforms, it could mean the demand for SOL is falling, which is a net negative for prices.
As a crypto investor, I’ve noticed an uptick in the stock market recently, with indices like the S&P 500 surging. This revival could pique the interest of investors looking for new opportunities, potentially leading them to consider cryptocurrencies. Furthermore, an exciting development is on the horizon: the United States Securities and Exchange Commission (SEC) seems poised to approve a spot Ethereum exchange-traded fund (ETF). If this happens, a significant influx of capital could flow into Ethereum, benefiting those who are already invested or providing an enticing entry point for new investors.
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2024-06-20 01:16