Solana’s Downtrend Signals Buying Opportunity, Predicts Analyst Raol Pal

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In the wake of the recent digital currency market correction, leading alternative cryptocurrency Solana has been unable to escape the sweep of dipping prices. Despite its rise to a staggering $210 at the 2024 Q1 peak, it has been weathering a downward spiral, mirroring the performance of both Bitcoin and Ethereum.

However, as stormy as current conditions may seem, macro analyst Raol Pal proffers a silver lining for both investors and traders alike. He asserts that, even in the midst of such a steep decline, the moment could be ripe to consider Solana. Pal proposes that traders may want to start loading up on the cryptocurrency, grounding his viewpoint on the arrangement presented by the daily candlestick chart.

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Navigating the SOLUSDT chart, it becomes apparent that Solana’s trajectory has entered a period of stagnation, fluctuating within a broader framework following its ascent to over $200 in March. However, amidst this lull, a support level seems to be taking shape in the zone between $120 and $125.

As of the present moment, Solana’s metamorphosis continues with its exchange rate hovering around $130, demonstrating a sharp contraction of roughly 40% from its March 2024 apex. Anticipating possible market shifts looming at the end of May 2024, it piques interest as to how prices will evolve at this key juncture.

Placing trust in Pal’s expertise, his prediction leans towards the possibility of Solana bouncing back from this support level and regaining momentum based on the previous year’s upward trend. However, it must be acknowledged that the future trajectory of the price comes with no certainties. From a technical perspective though, a price closure above $190, or ideally at $190, could signal the initiation of an ascending phase, thereby dampening the strength of the bears.

An intriguing uncertainty arises considering the prospect of Solana’s future performance. It largely depends on various influencing factors such as market developments and on-chain activity, which in recent days have shown a noticeable downturn. A point of interest is that Ethereum, with its experimentation with layer-2 solutions like Base, Arbitrum, and Optimism, appears to be gaining ground at Solana’s expense.

Solana, with its superior scalability compared to Ethereum, offers the advantage of lower transaction fees. However, a decrease in on-chain activity relative to other economical platforms could potentially signify a dwindling demand for Solana, which in turn could negatively impact its price.

At the same time, with the global stock market gearing upwards and indices like the S&P 500 making a robust rally, investors may shift their focus back towards cryptocurrencies. With the United States Securities and Exchange Commission (SEC) reportedly on the verge of greenlighting a spot Ethereum exchange-traded fund (ETF), it would lead to an influx of capital into Ethereum, creating a fascinating dynamic in the crypto marketplace.

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Melinda Cochrane is a poet, teacher and fiction author. She is also the editor and publisher of The Inspired Heart, a collection of international writers. Melinda also runs a publishing company, Melinda Cochrane International books for aspiring writers, based out Montreal, Quebec. Her publication credits include: The art of poetic inquiry, (Backalong Books), a novella, Desperate Freedom, (Brian Wrixon Books Canada), and 2 collections of poetry; The Man Who Stole Father’s Boat, (Backalong Books), and She’s an Island Poet, Desperate Freedom was on the bestseller's list for one week, and The Man Who Stole Father’s Boat is one of hope and encouragement for all those living in the social welfare system. She’s been published in online magazines such as, (regular writer for) ‘Life as a Human’, and Shannon Grissom’s magazine.