An analyst has warned of the risk of Solana
$SOL collapsing, similar to the
#LUNA scenario. While Solana's price is rising amid optimism surrounding altcoins, analysts caution that this could be the calm before the storm. SOL shows weakness in key parameters.
Capital is flowing into altcoins with strong fundamental value and liquidity. Not everyone will profit from the altcoin season, and Solana investors are at risk.
Solana Could Repeat LUNA's Fate
Solana has surged over 20% in a week and 0.609% in the last 24 hours. At the time of writing, SOL was trading at $201.01. The altcoin market is once again instilling hope in investors.
However, not everyone is confident in Solana. While some traders predict a rise to $300 and beyond, one analyst is sounding the alarm.
Technical analyst Gert van Lagen compares Solana's weakening structure to the early signs of Terra's LUNA crash in 2022.
Gert van Lagen highlights Solana's breakdowns on high timeframes against Bitcoin (
$BTC ), Ethereum (
$ETH ), Cardano (ADA), and XRP as serious warning signs. He has drawn attention to bearish trends. According to the analyst, the current situation with Solana looks like exhaustion. The token shows no signs of recovery compared to its main competitors.
In relation to
#Bitcoin❗ is in a downtrend after its 2023 rally. Similarly, SOL is weakening against Ethereum. Moving averages in the pair indicate a prolonged bear market. Solana is also weakening against Cardano and XRP.
"What happens if an asset keeps losing ground against every major competitor? It will be exchanged," he added.
This pessimistic forecast raises the question: could Solana miss out on the anticipated altcoin season?
Counterarguments and Technical Progress
However, not all analysts agree with the bearish scenario. ZYN, an investor and influencer in the Web3 space, described Solana's current price structure as a "confirmed breakout."
The analyst expects the price to rise to $260 if it holds above $200.
Solana is undergoing a significant network upgrade as part of Epoch 821.
The CEO of Helius Labs reported that Solana's block size is increasing by 20% to improve throughput.
After the upgrade, throughput could exceed 60,000 transactions per second (TPS) thanks to the QUIC network protocol and its proof-of-stake (PoS) blockchain architecture.
Technical advancements could strengthen Solana's position, especially now that
#Ethereum is working on scaling after Pectra.
However, concerns remain. Frequent Solana network outages and unstable performance during peak demand raise doubts about its long-term reliability.
#Solana faces an important choice. While optimists see structural breakthroughs, increased throughput, and institutional investor interest as growth drivers, skeptics warn of hidden systemic weaknesses.