Altcoin Sherpa’s Insights
Altcoin Sherpa, an anonymous cryptocurrency analyst and trader, stated on his X account that Solana is a strong altcoin project that can perform well in the next bull market. While the analyst expects a long-term rise in SOL, he emphasized that reaching the bull zone is likely to be challenging, stating:
“Solana is still a strong network and probably the best investment option for the next bull run. I am holding a certain amount of SOL for the long term because I expect its value to multiply. However, the short-term price movement is expected to be volatile.”
The Drop in SOL Will Trigger a Major Rise
Altcoin Sherpa’s short-term downward prediction is due to the intention of the bankrupt cryptocurrency exchange FTX to liquidate a large amount of SOL it holds to pay off its creditors. According to court documents, FTX currently holds approximately $1.16 billion worth of SOL. The analyst warned investors that FTX’s liquidation could trigger a drop in SOL to as low as $5, stating:
- The next buying zone for SOL that I am waiting for is the $17 to $15.50 range.
- There are many fearful investors regarding a potential FTX liquidation.
- Does this mean the end of SOL? No, in fact, I believe this large sale (if it happens) will cause Solana to hit rock bottom. This is one of the biggest questions regarding a large-scale sell-off.
- If FTX liquidates its SOL holdings, I expect the price to drop below $10, maybe even to $5, and then make a V-shaped recovery.
A V-shaped recovery is a technical formation where an asset sharply drops and then rises sharply in an upward direction.
Altcoin Sherpa stated that a drop to $5 in SOL is a possibility, and the downward target is a trigger for long-term growth. He also added that this altcoin, considered to be Ethereum’s rival, will start accumulating at the $10 level in such a rise.
According to CoinMarketCap data, SOL is currently trading at $18.16, just above the first buying zone indicated by the analyst, with a 0.96% increase in the last 24 hours.