 ▲ Solana (SOL) |
The price of Solana (SOL), an altcoin considered a key rival to Ethereum (ETH), plummeted to below $150. However, cryptocurrency analyst Altcoin Sherpa reported a strong outlook for Solana.
Multiple foreign media outlets, including AMB Crypto and Daily Hodl, reported Altcoin Sherpa's forecast that Solana is currently undergoing price consolidation in the $185 and $120 range. The price integration stage for market balance after a rapid price rise is a commonly observed trend in the cryptocurrency market, and is sometimes interpreted as a preparation stage for a larger rise.
Altcoin Sherpa pointed out $138.37, which is the Fibonacci 38.2% retracement line, as an important turning point for Solana's price. If it falls below $138.37, the Fibonacci 50% retracement line and the Fibonacci 61.8% retracement line will serve as additional limit sections for price stability.
AMB Crypto, a cryptocurrency media outlet, reported on the outlook for altcoin Sherpa and said that Solana's network activity indicators have recently recorded a positive trend.
The media explained that as a result of Solscan data analysis, the number of active addresses on the Solana network increased from less than 1 million to more than 1.1 million in a week. An increase in active addresses may indicate increased user engagement or future transaction preparation activity, which could lead to increased demand for Solana.
On the other hand, cryptocurrency analyst CredibleCrypto predicted that if Solana fails to support $140, it could plummet to $115. He diagnosed that $140 is the range where there is a high probability that the price will begin to rebound.
However, he noted that Solana shows a similar pattern to the price trend of Bitcoin (BTC), and explained that there is a possibility of a temporary rebound given that Bitcoin is currently close to its low point.
