 ▲ Solana (SOL) |
Andrew Kang, co-founder of digital asset manager Mechanism Capital, warned of the risk of a plunge in the price of Solana (SOL).
NewsBTC, a blockchain media outlet, is concerned that the approval schedule for Ethereum (ETH) spot exchange-traded fund (ETF) in the U.S. may be delayed from the end of May, which was originally scheduled, to the fourth quarter of this year, and is predicting the impact on Solana price. He explained that he was referring to hitting.
He diagnosed that the delay in approval of the Ethereum spot ETF would cause the absence of capital flowing into the market and eventually reverse the upward momentum.
Next, the possibility that Solana's meme coin could influence Solana's price trend was also raised.
“Solana has performed well this cycle. However, the demand for memecoin transactions has affected Solana’s price flow in both directions,” he said. “If memecoin trading is halted in the coming months, Solana could fall to $80.” This means that Solana's trading price is likely to fall by up to 41%.
Cryptocurrency analyst TexasHedge later supported Kang's outlook, saying that current market conditions had an impact on Solana's weakness.
Texas Hedge noted that Solana was recognized as an attractive asset in terms of high-risk, high-yield reward investments. This led to a large amount of capital flowing into Solana. In particular, it played an important role in boosting Solana's valuation when it reached its peak strength.
Texas Hedge said, “Andrew’s Solana price analysis is meaningful in many ways,” adding, “The fact that Solana remains the world’s best casino asset with high rewards as well as high risk helped attract capital. However, the current capital outflow trend is causing great pain to Solana’s price,” he explained.
