It has been just revealed that Solana could see some pretty impressive moves upwards. Check out the latest reports about the matter below.
SOL price prediction is out
According to a prominent crypto trader, Solana (SOL), a competitor to Ethereum (ETH), has the potential to generate significant returns for investors in the long run.
Altcoin Sherpa, a trader who goes by a pseudonym, shares with his 196,200 followers on X social media platform that Solana is a crypto project with strong fundamentals and may perform well in the upcoming bull market. However, he warns that the path to reaching the bull territory could be challenging.
SOL is a reliable network and a wise investment for the upcoming bull market. The long-term investment is made in hopes of earning substantial returns in the future. However, he anticipates some short-term challenges for SOL.
Altcoin Sherpa has a pessimistic outlook for the short term due to the possibility of FTX, a bankrupt crypto exchange, selling off their SOL holdings to pay back their debts. Court documents indicate that FTX currently possesses $1.16 billion worth of SOL.
If FTX decides to go ahead with the liquidation, it may result in a domino effect that causes SOL prices to drop drastically, potentially reaching as low as $5.
Currently, many investors are worried about a possible FTX holdings liquidation, particularly in the $17-$15.50 range. However, this doesn’t necessarily mean that SOL is finished. In fact, if a significant sell-off does occur, it could create a bottom for Solana.
The liquidation of FTX is one of the last major concerns regarding the significant supply of SOL. If it does happen, you can expect the price to plummet to below $10, possibly even as low as $5, before making a V-shaped reversal.
A V-shaped reversal is a technical pattern whereby an asset experiences a sharp decline followed by a significant upward movement.
Check out the original article posted by the online publication the Daily Hodl in order to learn more details about this.
