A closely watched crypto strategist believes that Solana (SOL) is still in a downtrend despite last week’s surge.
Pseudonymous analyst Altcoin Sherpa tells his 196,300 followers on social media platform X that Solana is facing a key resistance level around $19.50.
According to the analyst, Solana has been printing bearish lower-high setups since hitting its 2023 high of $32.30 in July.
“We would be cautious with this current increase. It’s nice to see some recovery, but every rally in recent weeks has only resulted in a lower top. Anyway, if you want to make an investment, it can’t be bad to accumulate less than $20.”
At the time of writing, SOL is trading at $19.04, up over 8% from its seven-day low of $17.57.
Should SOL’s latest rally fade, Altcoin Sherpa says the $14 level could act as support. However, he warns that SOL’s prospects of staying above $14 all depend on how bankrupt crypto exchange FTX liquidates its massive $1.16 billion Solana hoard.
“However, it takes a while for it to form a bottom. I don’t know if the FTX stuff is ‘priced in’. The coming months will be very interesting to see how the price reacts to the high supply on the market.”
As Altcoin Sherpa Sounds Alarm About FTX’s Major Solana Stakes, Says Investor Chris Burniske tells his 263,400 followers on the social media platform
“Only ~13% of FTXs SOL holding companies are liquid.”
Burniske, a partner at crypto-focused venture capital firm Placeholder, says he’s bullish on SOL in the long term despite the FTX baggage.
“ETH and BTC both have baggage and have hit new ATHs (all-time highs) with each major expansion. Every person is flawed, every institution is flawed, and every currency is flawed.
In other words, we all have baggage, and many of us, whether human, institution, or coin, continue to create new ATHs.”
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Generated image: Midjourney