Analyst Predicts Significant Upside for Solana as Ethereum Competitor, but Identifies a Key Challenge

Crypto Analyst’s Perspective on Solana’s Future

A prominent crypto analyst, known as Altcoin Sherpa, has provided insights into the trajectory of Solana (SOL), positioning itself as a strong contender against Ethereum (ETH). Altcoin Sherpa, with a substantial following of 200,700 on X social media, anticipates a significant upward movement for Solana but issues a cautionary note for traders.

Altcoin Sherpa suggests that Solana is poised for further gains in the future, emphasizing its potential as a smart contract platform. However, the analyst warns traders about a potential dip in SOL’s price, attributing it to the influx of SOL tokens from the bankrupt crypto exchange FTX.

Analyst’s Insights on Solana’s Current Situation

Altcoin Sherpa shares his analysis, stating, “SOL: I still think that we go a bit lower. FTX supply coming here eventually, and I think this move up is to bait some buyers. Would just be patient on Solana. Note: I think that this one is going to go much much higher in the future.”

Despite the anticipated dip, Altcoin Sherpa advises patience, highlighting that FTX’s impending supply addition to the market is a factor to consider. The analyst points out that Solana has been consolidating over the last month, coinciding with a generally positive trend in Bitcoin (BTC).

“Although I think that you should still stay a bit patient given FTX supply is coming onto the market sometime (who knows when), Solana has also consolidated for a month in an overall macro healthy BTC (Bitcoin) upswing. In my opinion, this means you should at least be exposed now if you want in on this one.”

Investment Strategy Recommendations

Altcoin Sherpa provides strategic recommendations for investors interested in Solana. The analyst suggests a swing trade approach with entry points ranging from the current price down to sub-$50. Additionally, Altcoin Sherpa notes that Solana can serve as a long-term investment, recommending holding it for six months or more with a high probability of substantial gains.

As of the latest update, Solana is trading at $66.36, reflecting a 4.7% increase over the last day. Notably, this marks an impressive surge of over 550% from its price of $9.97 at the beginning of 2023.