Solana Heading For New Highs: Analyst

Analysts forecast new peaks for Solana (SOL), noting potential rebounds influenced by market trends and substantial inflows, despite recent volatility and a significant drop from its high.

Analysts from Crypto ZX are optimistic that Solana (SOL) is now headed for new highs based on its current prospects.

The analyst noted that although the cryptocurrency is struggling, its long-term prospects remain bullish. He addressed the effects of increased market uncertainty, which typically bolsters Bitcoin’s dominance, causing altcoins like Solana to lose value. According to him, this trend was evident as Bitcoin maintained its crucial support at $60,000, while Solana experienced a substantial retracement from its yearly high of $210 to around $44%.

The expert projected that Solana could experience a rebound towards previous highs, influenced by substantial inflows from other platforms and broader market developments. He encouraged Solana holders to consider buying below $160, anticipating significant upward momentum in the next 8 to 9 months. Raul Paul also predicts SOL could hit $800 in the long term, while Crypto Jebb stipulates it’s time to buy.

He further illuminated Bitcoin’s role in the ecosystem, particularly how its performance affects altcoins like SOL. The speaker pointed out that Bitcoin’s upcoming halving event is expected to introduce more volatility into the market, which could also lead Solana to mirror the broader market’s fluctuations.

Solana Price Analysis: How Do SOL Markets Look?

According to insights from CoinMarketCap, SOL was trading at $134 as of 1:50 p.m. UTC, representing a 0.08% pump over the last 24 hours. Looking at charts, Solana shows signs of volatility, forming what appears to be a triple bottom, a bullish reversal pattern. If the pattern completes to confirm a breakout, we could see a pump back up to previous resistance levels.

1-hour SOL/USD Chart | Source: TradingView

On the other hand, analysing indicators, we see the Relative Strength Index (RSI), a momentum oscillator, sitting around the mid-range, which does not indicate overbought or oversold conditions. However, the Average Oscillator (AO) is transitioning from red to green bars, suggesting that downward momentum wanes and could shift towards bullish momentum.