What Makes Solana “Core Trade?” Analyst Reveals

According to a well-known market analyst, Solana may perform better than Bitcoin in the current market cycle. In this regard, it is expected to be at least two times more effective than Bitcoin, regardless of the Bitcoin performance.

The analyst explained that if Bitcoin hits $60,000 in this cycle, Solana trading at $140 can go up to $560. In the most bullish case, supposing the price of Bitcoin increases to $180,000, the cost of Solana will skyrocket to $840.

The expert referred to Solana as a “core trade of this cycle.” He states that the rest of the market is “just noise. ” However, as seen recently, the market can be quite volatile, but the analyst has confidence in the fundamentals.

The high throughput of the blockchain and its scalability and low-fee nature make it a serious player in the highly competitive cryptocurrency market. The analyst also noted that in terms of the growth rate, Bitcoin is relatively slower.

He states that Solana, which is smaller and more flexible, makes Bitcoin less appealing for traders looking to make money from quick price increases.

fairly confident that whatever $BTC does from here till the end of the cycle, $SOL will min. do 2x that

bitcoin $60k -> $120k == solana $140 -> $560
bitcoin $60k -> $180k == solana $140 -> $840

core trade of this cycle, rest of it is all noise pic.twitter.com/P6Sx5d6U5N

— Ansem (@blknoiz06) June 25, 2024

Solana’s Weekly Performance Signals Strength

In the past week, Solana has proved its stability during market fluctuations. The token has risen by almost 4%, keeping the bull’s perspective on the token valid in the coming days. Even as the significant cryptocurrencies remain somewhat volatile in the market, this rally points to Solana’s ability to hold up better than some of its peers.

Solana has been trading around $130 in the recent charts when writing this article. Despite a 2.36% drop in the last 24 hours alone, the token’s trading volume increased by more than 54% to $1.78 billion.

This increase in trading volume indicates that investors are interested in the asset again and can expect more profits. This may also be attributed to the general market’s perception of Solana as a promising asset owing to its technological advancement and strategic moves.

Technical Analysis Suggests Potential for Further Growth

From a technical point of view, the Solana price chart is bearish. The token recently created a rising wedge pattern. This bearish formation suggests it might face a short-term price drop. It also indicates that the asset may decline before resuming the upward movement.

This particular formation is bearish, and therefore, Solana may find support at $120 as the price declines. However, the Relative Strength Index (RSI) stands at 36.28, showing that Solana may be weakening to the extent that it could be close to being oversold.

The RSI is below 40, which usually indicates that the asset is oversold and could be due for a bounce. If this RSI action reverses from this level, it can open the path for SOL price to recover.

4-hour SOL/USD Chart | Source: TradingView

Levels to watch can be identified as the $120 support and $140 resistance levels. If Solana’s price breaks above $140, it would be bullish for the coin and could signal another rally. That being the case, a break below the $120 support level may lead to further bearish pressure.

This is with the subsequent important support level at $110. Solana’s volume-to-market cap ratio is currently at 2.91%, which shows increased trading volume than market capitalization.

This ratio usually gives a positive signal to traders as it shows increased interest in a particular asset. Solana is traded in the market, which can create more fluctuations and swings, resulting in significant price movements.

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