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Renowned cryptocurrency analyst and trader Altcoin Sherpa, closely followed by investors, highlighted the potential of Solana (SOL), which is considered to be the strongest competitor of Ethereum, to bring significant gains for long-term investors.
Solana’s Long-Term Potential
Altcoin Sherpa, an anonymous cryptocurrency analyst and trader, stated on his X account that Solana is a strong altcoin project that can perform well in the next bull market. While the analyst expects a long-term rise in SOL, he emphasized that reaching the bull zone is likely to be challenging, stating:
Solana is still a strong network and probably the best investment option for the next bull run. I am holding a certain amount of SOL for the long term because I expect its value to multiply. However, the short-term price movement is expected to be volatile.
“The Drop in SOL Will Trigger a Major Rise”
Altcoin Sherpa’s short-term downward prediction is due to the intention of the bankrupt cryptocurrency exchange FTX to liquidate a large amount of SOL it holds to pay off its creditors. According to court documents, FTX currently holds approximately $1.16 billion worth of SOL. The analyst warned investors that FTX’s liquidation could trigger a drop in SOL to as low as $5, stating:
The next buying zone for SOL that I am waiting for is the $17 to $15.50 range. There are many fearful investors regarding a potential FTX liquidation. Does this mean the end of SOL? No, in fact, I believe this large sale (if it happens) will cause Solana to hit rock bottom. This is one of the biggest questions regarding a large-scale sell-off. If FTX liquidates its SOL holdings, I expect the price to drop below $10, maybe even to $5, and then make a V-shaped recovery.
A V-shaped recovery is a technical formation where an asset sharply drops and then rises sharply in an upward direction.
Altcoin Sherpa stated that a drop to $5 in SOL is a possibility, and the downward target is a trigger for long-term growth. He also added that this altcoin, considered to be Ethereum’s rival, will start accumulating at the $10 level in such a rise.
According to CoinMarketCap data, SOL is currently trading at $18.16, just above the first buying zone indicated by the analyst, with a 0.96% increase in the last 24 hours.
