A well-known crypto analyst Altcoin Sherpa has expressed his optimistic outlook on Solana (SOL) in a post on X (formerly Twitter). In his analysis, the analyst went ahead to look at the recent behaviour of the token and gave his predictions for future performance. The analyst noted the slow moves upward on the chart of Solana and that the periods in between were rather elongated, hence the likelihood that there would be some selling pressure near the highs.
Still, he was bullish on Solana and warned that one should not expect a big correction at this point in time. He further emphasized that he is still very bullish on SOL for 2024 and that it will be more conducive for investors to buy the token now and hold rather than expecting a big correction.
Solana (SOL) Faces Ups & Downs
Solana was marked by both achievements and challenges in February. The beginning of the month was particularly earmarked by the breakthrough of the decentralized finance (DeFi) ecosystem based on Solana since the decentralized exchanges (DEX) on its blockchain network finally surpassed Ethereum’s in volume of trades for the second time in history.
Just a week after making the claim, the blockchain suffered its 11th outage in two years, this time knocking the chain down for nearly five hours. Even though it worried crypto investors, the price of SOL swiftly recovered from the drop.
During this period, SOL also made waves in the cryptocurrency market, briefly claiming the position of the fourth-largest cryptocurrency by market capitalization after surpassing Binance Coin (BNB) on February 14. As of the latest data, Solana has returned to the fifth spot, boasting a market capitalization of $49.7 billion, representing a notable 19.34% increase in the past month.
However, during this whole period, the trading volume was wavering for SOL. At the peak of last week’s rally on February 15, the trading volume reached $2.7 billion. Therefore, as prices began dropping, SOL holders seem to be shying off from trading, with the trading volume descending to $1.6 billion by February 18, marking a plunge of 40% from the peak.
Even so, Solana’s price only fell by 10% within the same period when trading volume declined. It is this difference between the volume of trade and falling prices that strategic investors interpret as an indication of strong positive conviction which means there would possibly be a recovery following the consolidation stage.
Solana Technical Analysis Hints $150 Target
Currently, Solana is priced at $113.70, with a 24-hour trading volume standing at $4.45 billion and a market capitalization totaling $50.11 billion. Yesterday, SOL increased by 1.21%, while for the last seven days it has gone up by 7%.
Technical analysis reveals that Solana may be headed for another rebound phase with possible targets around $150; however, on the other hand, the upper Bollinger band indicator suggests initial resistance around $119. In a bullish scenario, it could see SOL crossing above $120 as its first target level of significance before reaching the 150 mark.
Contrarily, a reversal below this area could nullify all bullish expectations as supported by major support expected to form around $91 within the short-term duration shown by the lower Bollinger band.
While, Solana faced challenges such as occasionally going down and fluctuating volumes during trade, but its recent performances, coupled with insights from analysts, suggest that there is hope for cryptocurrency in months ahead.