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Recently, famous crypto analyst Altcoin Sherpa gave his positive opinion on Solana (SOL) in an article on X (former Twitter). The analyst looked at the token's recent behavior and shared his predictions on SOL's performance.
Wait for the 20% drop or buy now?
In the post
The chart shows the recent behavior of SOL, starting in late December 2023, when the cryptocurrency reached its highest price since early 2022. Based on the recent performance shown in the chart, the analyst expects until SOL price breaks key resistance levels. However, he predicts a price pullback and market sell-off during price highs.
As the prediction shows, SOL price would surpass the $120 price range before facing a pullback. Then the pattern would repeat and the price of the cryptocurrency would reach the price level established in December. Following this rise, the price of the token would face a slight price correction before surpassing the $126 price range.
$ SOL: It's a weird graph to see this slowly progressing. I expect some sort of selling to occur around the highs given the amount of time between each high, but the overall market is still only up at this point. I think to expect a huge correction for #Solana it's me… pic.twitter.com/8VnHcJ4bNX
– Altcoin Sherpa (@AltcoinSherpa) February 18, 2024
Despite the small corrections observed in the prediction, the pseudonymous analyst does not predict a huge correction to occur soon and considers expecting one to be “for now”.
Further expressing his views on the possibility of a significant price correction, the analyst agrees with a member of the crypto community. User Underlines that Solana “just suffered a 35% drop from 125 to 80” and suggested that “by the next big correction, (the price) will be much higher than it is now.”
For the analyst, it seems more appropriate to buy SOL now and rest on it for the coming months instead of trying to wait for a 20% correction before buying:
I'm very bullish on this through 2024 and think most would make more money buying here and sitting on this thing for months instead of trying to wait out the 20% correction.
Solana (SOL) sees green
February was full of ups and downs for Solana. Earlier this month, Solana's DeFi ecosystem reached a major milestone after Solana-based decentralized exchanges (DEXs) surpassed Ethereum's daily trading volume for the second time.
However, the blockchain has had its 11thth outage in 2 years just a week after the completion of its DeFi ecosystem, with the chain down for almost five hours. Despite crypto investors' concerns over the outage, Solana's price quickly recovered from the price drop.
SOL recently became the fourth largest cryptocurrency by market capitalization after overtaking BNB on February 14; since then, Solana has climbed back to fifth place, with its market capitalization sitting at $49.7 billion, an impressive increase of 19.34% over the past month.
Solana's trading volume over the last day decreased by 9.20%. According to CoinGecko data, it stands at $1.5 billion, suggesting a recent decline in market activity.
As of this writing, the crypto market is seeing green, and Solana's cryptocurrency is no exception. SOL is trading at $112.4, representing a 1.0% price increase over the past 24 hours and a notable 7.8% increase over the past week.
SOL is trading at $112.90 in the hourly chart. Source: SOLUSDT on TradingView.com
Featured image from Unsplash.com, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the views of NewsBTC on whether to buy, sell or hold investments and, naturally, investing involves risks. You are advised to carry out your own research before making any investment decision. Use the information provided on this website entirely at your own risk.
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