tl;dr
Solana (SOL) is currently trading with a bullish bias, supported by positive altcoin sentiment and a recent 20% weekly surge. However, some analysts warn of potential weakness as SOL shows bearish trends against major cryptocurrencies like Bitcoin, Ethereum, Cardano, and XRP, raising concerns of und...
Solana (SOL) price is currently trading with a bullish bias, fueled by positive sentiment around altcoins. Despite a recent surge of over 20% in the past week and a modest increase of 0.609% in the last 24 hours, some analysts caution this optimism may be short-lived as SOL shows signs of weakness across key trading pairs. Capital rotation favors high-fundamental and liquid altcoins, but concerns remain whether Solana will fully benefit from the perceived altcoin season.
Technical analyst Gert van Lagen draws a stark comparison between Solana’s weakening structure and the early indicators of Terra’s LUNA collapse in 2022. He highlights significant breakdowns against Bitcoin, Ethereum, Cardano, and XRP, pointing to bearish divergences and a multi-asset downtrend. Solana displays downtrends relative to Bitcoin after the 2023 rally, with prices stuck below crucial moving averages. Similar bearish trends are visible against Ethereum and Cardano, with SOL facing rejection at key levels, and a comparable outlook emerges versus XRP, signaling a lack of recovery momentum. Van Lagen warns that continuous underperformance against major competitors could lead to asset swapping by investors.
Contrasting this cautious stance, some analysts like Web3 investor Zyn interpret Solana’s breakout past mid-range resistance as a bullish confirmation. Zyn anticipates that if SOL can consolidate above $200, momentum may drive the price toward $260, signaling readiness for further gains.
Further bolstering the bullish narrative is Solana’s ongoing network upgrade as part of Epoch 821, which includes a 20% increase in block size. This protocol enhancement aims to boost throughput, potentially exceeding 60,000 transactions per second (TPS), by leveraging the QUIC networking protocol and Solana’s Proof-of-Stake architecture. This development could enhance Solana’s competitive position amid Ethereum’s own scaling efforts post-Merge. However, persistent reliability concerns loom due to past network outages and instability during high demand periods, tempering enthusiasm.
Solana stands at a pivotal moment where technical breakouts, increased capacity, and institutional interest may propel it higher, yet underlying structural weaknesses could undermine these gains. The coming weeks will be critical in determining if Solana rises to the occasion or follows a more challenging path.