A Crypto Analyst Believes Solana’s Downtrend Continues
A popular crypto strategist, known as Altcoin Sherpa, suggests that Solana (SOL) is still experiencing a downtrend despite its recent surge in value. Altcoin Sherpa states that SOL is currently facing a significant resistance level at around $19.50. The analyst points out that since reaching its high of $32.30 in July, Solana has been consistently forming bearish lower-high patterns.
Although it is encouraging to see some recovery, Altcoin Sherpa advises caution regarding the current upward movement. However, if you are looking to invest, accumulating SOL at below $20 could be beneficial in the long term.
FTX Liquidation Could Impact SOL’s Price
Solana is currently trading at $19.04, showing an 8% increase from its seven-day low of $17.57. Altcoin Sherpa warns that if the recent rally loses momentum, SOL may find support at the $14 level. However, the analyst cautions that SOL’s ability to stay above $14 depends on how FTX, a bankrupt crypto exchange, liquidates its substantial Solana holdings worth $1.16 billion.
Only a Small Amount of FTX’s SOL Holdings are Liquid
Investor Chris Burniske contradicts Altcoin Sherpa’s concerns about FTX’s Solana holdings. Burniske claims that only approximately 13% of FTX’s SOL holdings are liquid. As a partner at Placeholder, a crypto-focused venture capital firm, Burniske remains bullish on SOL’s long-term prospects despite FTX’s involvement.
Hot Take: Baggage Doesn’t Stop Growth
Burniske emphasizes that Ethereum (ETH) and Bitcoin (BTC) have both faced their fair share of challenges and have still achieved all-time highs during significant expansions. He suggests that flaws exist in humans, institutions, and even coins themselves, but this doesn’t prevent them from reaching new ATHs.
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Sources:
- Altcoin Sherpa/X
- Chris Burniske/X
Image Credits:
- Midjourney
The article was originally published on The Daily Hodl.
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