Recently, a great deal of attention – both positive and negative – has been placed on Solana. Experts are very bullish on SOL, and crypto analyst Alan Santana once showed his skepticism about the token by stating that it could be about to drop significantly.
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Mixed views on Solana’s stability
Solana has been impressive in terms of stability within this wild market. Cryptocurrency expert Jelly echoed the same sentiment when he pointed to SOL’s impressive chart and explained how the digital asset could reach $260.
His interpretation showed that SOL was easily making higher lows compared to struggling giants like Bitcoin and Ethereum. This resilience, coupled with a range-bound move below its all-time high, suggests that SOL may be on the verge of a breakout.
Sol Still one of the best charts in crypto.
Sideways, just below all-time highs – no lower lows though. #Bitcoin & Ethereum I have had difficulties in the last few months as well.
Locked, send this for over $260. 📈 pic.twitter.com/AHtmKdfQWO
— Jelly (@CryptoJelleNL) August 16, 2024
This is in stark contrast to what Santana expressed. His analysis showed a recurring trend in Solana’s price history. He gave examples of short-term spikes in Solana’s price — two to three weeks — followed by sharp declines. This has happened several times before, and now, it seems, Santana believes that such a pattern is forming again.
Potential decline and key levels
He said that it is possible that SOL will return to its trading range in January 2024. According to him, most altcoins, including Ethereum, are already returning to their base prices amid this year’s market correction. He said that Solana may do the same, returning to its January lows, or even lower.
✴️ Solana RSI and MaCD, January 2024 baseline, 2-3 week bounce then drop!
Let’s take a look at these two indicators mentioned in the title but first let’s consider the simple price dynamic; a 2-3 week rally and then a drop!
This week has just begun, and we will be halfway through soon. pic.twitter.com/D7FezL117N
– Alan Santana (@ lamatrades1111) August 13, 2024
This analysis is based on historical patterns and key price dynamics. Santana’s analysis basically suggests that despite SOL’s current stability and optimistic outlook, there could be a significant pullback in the future. This possibility therefore adds some risk to investors who are relying on SOL as a stable bet in the current market.
The debate over Solana’s future
These opposing views on Solana’s future reflect the general uncertainty within the cryptocurrency market. While Gilly is bullish on Solana, assuming a significant price rise, Santana is on the other side with his bearish outlook, indicating caution. This divergence between analysts symbolizes the unpredictability of the cryptocurrency market.
These conflicting views suggest that Solana is still in the thick of market volatility. With the market primed for volatility, it will be interesting to see whether Solana breaks the $260 barrier or continues to fall. The ball is rolling, and Solana’s next moves will determine its fate.
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Investor caution and market dynamics
At the moment, the discussion around Solana’s price action reflects the broader uncertainty in the cryptocurrency market. Investors and traders need to be careful to balance the existing views on both the bullish and bearish outlook of the situation. As this situation evolves, Solana will be part of such shows that could lead its price to move in either direction.
Featured image by Pexels, chart by TradingView