Is Solana Preparing For Liftoff Or Meltdown? Analysts Forecast SOLs Future
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.
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Analysts Fear SOLs 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 tokens 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, Solanas market capitalization surpassed its previous ATH, reaching a market cap of $93 billion.
Last weeks 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 Marchs ATH. Nonetheless, some crypto analysts see the possibility of a meltdown ahead for Solana.
Crypto analyst Bluntz posted a video looking at SOLs macro chart. Per the post, the analyst considers that SOL is done, SOL is exhausted, and its 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 Bluntzs 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 Solanas market cap ATH as a key factor.
Moreover, the crypto trader pointed out a five-way decline since Marchs highs, followed by a three-way move up. To the analyst, this suggests that Solana is exhausted as its starting to struggle.
According to Bluntz, theres a high chance that the highlighted performance will result in a macro lower high. Additionally, he forecasted SOLs price to retrace below the $100 mark.
Is Solana Poised For A Liftoff Or A Meltdown?
Similarly, pseudonym analyst Credible issued a warning regarding SOLs future. To the analyst, coins like $SOL are just in larger distribution structures now. However, Credible considers that BTCs strength will relieve SOL as it initially drags the whole market up.
The analyst agreed with Bluntzs prediction, stating that it is ultimately where we are headed, but considers theres a good chance Solana sees highs above Marchs 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.
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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 its 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
Source: NewsBTC.com
The post Is Solana Preparing For Liftoff Or Meltdown? Analysts Forecast SOLs Future appeared first on Crypto Breaking News.
Text source: Crypto Breaking News
