Is This The Best Time To Buy Solana?
The recent correction in the cryptocurrency market has not spared Solana, one of the top altcoins, as it faces strong headwinds and plunges in value. After reaching a high of $210 in Q1 2024, Solana is now trading at around $130, down approximately 40% from its peak.
Despite the downward trend, macro analyst Raol Pal believes that now is the best time for investors and traders to consider buying Solana. Pal points to the candlestick arrangement in the daily chart as a potential indicator for a bullish reversal.
Looking at the SOLUSDT chart, it is evident that the coin is moving sideways within a broader flag pattern, with the $120-$125 zone identified as a key support level to watch. If the bears continue to press on, it will be interesting to see how prices react at this critical level.
On the other hand, on-chain activity for Solana has been shrinking, while Ethereum is poised to receive more institutional support. Ethereum’s layer-2 solutions like Base, Arbitrum, and Optimism are gaining traction, potentially impacting Solana’s market performance.
Despite Solana’s higher scalability and lower transaction fees compared to Ethereum, a drop in on-chain activity could signal waning demand for SOL, which may negatively impact its price. Additionally, the revival in the stock market and the potential approval of a spot Ethereum exchange-traded fund by the SEC could divert capital towards ETH.
As the cryptocurrency market continues to evolve, investors and traders are advised to closely monitor market developments and on-chain activity to make informed decisions about their investments.
