Site icon Crypto News Focus

Solana May Be First to Exit Crypto’s “Waiting Room” as Market Cycle Could Extend Into 2026

solana SOL

What is the Crypto “Waiting Room”?

The term crypto waiting room, coined by Global Macro Investor CEO Raoul Pal, describes the current stage of the digital asset market — a pause before the next broad price discovery phase.

Unlike previous cycles, this pause isn’t due to weak fundamentals. Instead, it reflects macro-driven dynamics where slower business-cycle liquidity may delay peak momentum until early 2026.

Analysts believe this extended cycle could set the stage for altcoin breakouts, with Solana (SOL), Sui (SUI), and Dogecoin (DOGE) among the first movers.

How Institutional Capital Could Extend the Market Cycle

Institutional allocations remain resilient, with capital still flowing into crypto markets. A key indicator is the surge of stablecoin inflows, which recently surpassed $1.65 billion on major exchanges.

Also Read: Bitcoin’s Decline: Halving Cycle or Market Turmoil?

Historically, such inflows act as “dry powder” — liquidity that eventually rotates into Bitcoin, Ethereum, and altcoins during bullish expansions.

This reinforces Pal’s view that crypto markets may not reach peak cycle levels until Q1–Q2 2026, giving investors more time to accumulate before major upside moves.

Altcoins Poised to Leave the Waiting Room

Pal identifies Solana (SOL) as the first likely breakout candidate, citing its ascending-triangle technical setup — a bullish pattern that typically signals continuation of upward trends.

Following SOL, Sui (SUI) and Dogecoin (DOGE) are positioned to benefit as momentum spreads from large-cap to mid-cap altcoins.

Meanwhile, assets like XRP are undergoing structural shifts, with broader adoption phases still in progress. Analysts warn that while comparisons to 2017’s cycle exist, today’s institutional involvement and macro backdrop make this cycle unique.

What Traders Should Watch Next

To navigate this extended cycle, traders should monitor:

The crypto waiting room may last longer than expected, with the cycle potentially stretching into early 2026. However, this period is not bearish — rather, it suggests capital is building for the next breakout.

With Solana, Sui, and Dogecoin highlighted as early movers, traders and investors should stay alert to stablecoin flows, liquidity conditions, and technical setups to anticipate the next leg of the bull market.

Exit mobile version