Solana's Outlook Against Bitcoin: Analysts Share Their Views
As highlighted by Cointelegraph, Solana (SOL) is often seen by its supporters as a potential "Ethereum killer," leading to inevitable comparisons, especially after Ethereum (ETH) hit a multi-year low against Bitcoin (BTC). The big question on the minds of investors is whether Solana can maintain its ground against Bitcoin or face a similar downturn as Ethereum.
Analysts are divided on Solanaâs future prospects. While some predict a decline in its price, others foresee the possibility of a strong rally. Veteran trader Peter Brandt shared his insights on Sept. 20, stating that if Solana holds the critical $120 support level, it could be primed for a substantial upward move. Similarly, VanEck expressed optimism in a report released on Sept. 25, predicting that Solana could reach $330, which would bring its market capitalization to 50% of Ethereum's current value. However, the report also noted that institutional investors have been slow to fully embrace Solana, likely due to their preference for more established cryptocurrencies like Ether.
Solana is also facing rising competition from new challengers that could threaten its dominance as the leading alternative layer-1 blockchain to Ethereum. Analysts from K33 Research pointed out that the Sui Network is emerging as a strong competitor and could pose a challenge to Solana's position.
When analyzing the weekly price charts of SOL/BTC, the pair has formed a symmetrical triangle, which is often considered a continuation pattern. Since the price was trending upwards before this pattern emerged, a breakout seems plausible. However, the flat 20-week exponential moving average (around 0.0023 BTC) and the relative strength index (RSI) hovering near the middle suggest no clear advantage for either bulls or bears. Should bulls manage to keep the price above the 20-week EMA, the SOL/BTC pair could break above the resistance line, potentially climbing to 0.0031 BTC, with the target set at 0.0039 BTC. On the flip side, a break below the triangle could lead the pair to drop to 0.0018 BTC and eventually down to 0.0013 BTC.
On the daily charts, the pair has been oscillating between the support and resistance lines within the triangle. After bouncing off the support on Sept. 18, the price moved above the moving averages on Sept. 26. Buyers will now attempt to push the price towards the resistance, where sellers are likely to step in. If the price bounces off the 20-day EMA (at 0.0023 BTC) after turning down from the resistance, the chances of a breakout increase. However, if the price falls below the moving averages, it may indicate an extended stay within the triangle, and the bears will gain the upper hand if the price breaks below the support line.
Given the uncertainty surrounding the breakoutâs direction, itâs wise to wait for confirmation before making any major investments. This analysis is not financial advice; all investments come with risk, and readers are encouraged to conduct thorough research before making any decisions.
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