- Solana’s recent market surge has sparked intense debate among analysts, with some predicting a new all-time high while others foresee a potential meltdown.
- Despite a significant recovery and a new market cap ATH, opinions are divided on whether Solana can sustain its upward momentum or face a downturn.
In the aftermath of the recent market surge, Solana (SOL) has made a remarkable recovery of a crucial support zone, stirring intense debate among analysts. The emerging consensus is divided; some foresee an anticipated liftoff propelling Solana toward a new all-time high (ATH), while others predict a stark meltdown.
The Surge and Recovery: A Tale of Two Predictions
Solana charted an impressive comeback over the past week, retrieving the $160 support zone and climbing to levels unseen since early April. It dared to approach the $190 resistance mark but fell short, with its value oscillating around the $180 to $170 range before retreating to the $160 support level over the weekend.
Despite falling short compared to Bitcoin (BTC) and Ethereum (ETH), Solana managed to set a new ATH in market capitalization during the current economic cycle. In March, Solana’s market cap eclipsed its previous ATH, reaching a striking $93 billion.
Last week’s financial uptick propelled Solana skyward with a staggering 56% surge from its rate during the May 1 pullback. This triggered a surge in its market cap that surpassed its 2021 ATH, reminiscent of March’s peak. However, some crypto analysts predict a grim future for Solana, speculating a potential meltdown.
Divergent Opinions: Bullish vs. Bearish
Crypto aficionado Bluntz shared insights from Solana’s macro chart in a video post, asserting that “SOL is done, SOL is exhausted, and it’s probably time for ETH to catch up, which will probably be the last leg of the bull market.” He inferred from the macro chart that the token has possibly peaked. His chart depicted a five-part ascension to its cycle zenith of $210 in March. Although the price ATH was not met due to inflation, Bluntz emphasized Solana’s market cap ATH as a pivotal moment.
Bluntz pointed out a five-part regression since the March boom, followed by a three-part climb back up. He suggested that Solana is on the verge of exhaustion, struggling to maintain its upward trajectory. Concurring with Bluntz, another analyst predicted that Solana is likely to face a “macro lower high” and even ventured a bearish forecast of SOL’s price plummeting below the $100 milestone.
On a similar note, pseudonymous analyst Credible suggested that “coins like $SOL are just in larger distribution structures now.” Despite this, Credible implied that BTC’s endurance would benefit SOL, potentially dragging the whole market up.
While Bluntz’s prediction received some backing, other analysts disagree. DocXBT expressed dissent with the pessimistic outlook, asserting that he has encountered “a lot of dreadful Solana takes lately.” He believes that the token is “holding daily trends” and shows steady support and resistance levels. CryptoJelle echoed this sentiment, stating that SOL is “forming the post-breakout higher low” and exhibiting the same behavior it did during the February-March phase.
CryptoJelle hinted that Solana might have reached its bottom and could be on the verge of a new ATH, boldly predicting a price of $600 for SOL in this cycle. Currently, Solana is trading at $171.18, according to the three-day chart. These, of course, are speculations and predictions, leaving the market’s next move cloaked in uncertainty.
