In the competitive world of cryptocurrency, Ethereum (ETH) has a new rival that’s catching the eye: Solana (SOL). Notably, pseudonymous trader Altcoin Sherpa recently told his 196,200 followers on social media platform X that Solana could offer long-term investors exponential gains. According to Altcoin Sherpa, Solana is fundamentally sound and well-positioned for the next bull market.
However, the trader also warns that Solana’s path to bull territory won’t be smooth. “The road to get to bull territory will likely be bumpy,” Altcoin Sherpa noted. He maintained that, despite short-term volatility, SOL remains a solid investment for the future. “I’ve got a long-term bag that I’ll just hold because I expect great multiples on it later on. But in the short term, it’s likely going to be painful,” he elaborated.
Significantly, Altcoin Sherpa’s short-term bearish outlook stems from concerns about the defunct crypto exchange FTX. Court documents reveal that FTX holds approximately $1.16 billion in SOL. Consequently, he speculates that if FTX starts liquidating its SOL to repay creditors, the asset could see a steep decline in price. “The next point of interest is the $17-$15.50 area. A potential FTX liquidation could trigger cascading prices, sending SOL to as low as $5,” he said.
Moreover, Altcoin Sherpa believes that even such a downturn would not spell the end for SOL. Instead, he predicts a V-shaped reversal, a technical pattern characterized by a steep drop followed by a swift recovery. “If FTX gets liquidated, expect the price to capitulate to sub $10 ($5 maybe?), and then V reverse,” he explained.
Additionally, while he considers the $5 target a “longshot,” Altcoin Sherpa reveals he would start accumulating more SOL at the $10 mark. Hence, long-term investors should keep a keen eye on Solana, particularly as the crypto landscape continues to evolve.
At the time of writing, SOL is trading at $17.76, making the current atmosphere rife for speculative discussions about its future. With insights from seasoned traders like Altcoin Sherpa, investors may find the opportunity for both short-term and long-term gains.
