Renowned macro guru Raoul Pal is making waves in the crypto world once again, this time with his bold predictions about Ethereum competitor Solana (SOL). In a recent edition of his Global Macro Investor (GMI) newsletter, Pal highlighted the incredible rally SOL has experienced in recent weeks and the potential for even more gains in the future.
According to Pal, Solana broke out of a classic bullish pattern, the inverse head-and-shoulders, last month, kicking off a stunning 475% year-to-date surge. This impressive performance has made Solana one of the core trades at GMI this year, and Pal is confident that there is still more upside potential for this altcoin.
However, despite the impressive run-up, Pal warns that SOL may retrace in the short-term due to its overbought status, as indicated by the relative strength index (RSI). The RSI, a widely used momentum indicator, currently stands at 89, the highest level since September 2021. This suggests that there may be some selling pressure on the horizon for Solana. Pal notes, “We’re up 240% in two months!”
Despite the short-term caution, Pal’s long-term outlook for Solana remains incredibly bullish. He believes that SOL has a lot more room to grow based on its historical price patterns. Looking at the broader market trend, Pal points to Solana and other altcoins breaking out of a bullish falling wedge pattern, indicating a potential continuation of the uptrend.
At the time of writing, Solana is trading at a price of $52.53, reflecting a 6.3% decline in the last 24 hours. However, Pal’s analysis suggests that this dip should not discourage investors, as the big picture for Solana’s potential remains exciting.
With the volatile nature of the cryptocurrency market, it’s crucial for investors to stay informed and be prepared for sudden changes in price action. By subscribing to newsletters like GMI and staying up to date on market trends through social media platforms like Twitter, Facebook, and Telegram, investors can gain valuable insights into the potential future movements of their favorite cryptocurrencies.
It’s important to note that while Pal’s insights are valuable, they are not investment advice. Investors should always do their due diligence before making any investment decisions, especially in the high-risk world of cryptocurrencies.
In the end, it’s crucial for investors to remember that all trading and investment decisions carry inherent risks, and it’s important to be prepared for potential losses. However, with proper research and strategic planning, investors can take advantage of the exciting opportunities in the ever-evolving world of crypto.
