A popular analyst known for his in-depth research lays out what could be on the horizon for a top Ethereum (ETH) competitor.
In a new strategy session, Coin Bureau’s pseudonymous moderator, known as Guy, tells his 2.09 million YouTube subscribers that he believes the price of the Solana (SOL) layer-1 protocol could double if the broader one Altcoin rally continues.
“SOL’s price action also looks interesting from multiple angles. In terms of raw price action, SOL could potentially pull a 2x if the current recovery rally holds. That doesn’t sound like much, but if the rally continues, it would be a bigger percentage gain than other large-cap altcoins.
Therefore there is a certain legitimacy [FTX CEO] Sam Bankman-Fried’s comment that Solana is underrated. There is further evidence that SOL could see a serious rally if current crypto market momentum continues.”
The analyst also discusses Ethereum’s transition to a Proof-of-Stake (PoS) consensus mechanism, scheduled for mid-September. He believes the prospect of glitches or outright failure is attracting interest from several other ETH competitors, including Avalanche (AVAX) and NEAR Protocol (NEAR).
“Some of you may have noticed that Solana, Avalanche, Near Protocol and other so-called Ethereum killers have rallied as the merger approaches. This is no coincidence as there are many traders who are probably trying to hedge their portfolios in case something goes wrong with the merger.”
Finally, Guy examines SOL’s price for the ETH trading pair and notes that Solana appears to be following a pattern of troughs and rises where a peak may coincide with the upcoming Ethereum merger.
“Look at the SOL versus ETH chart in the weekly. Do you notice something? Call me crazy, but I see a pattern where SOL loses value relative to ETH for around five to six weeks before rallying against ETH for a week to three weeks.
It’s been six weeks of decline, and with the merger less than a month away, we could see another multi-week rally against ETH as ETH simultaneously appreciates in value relative to BTC [Bitcoin], and hopefully in Fiat terms too. This would result in the 2x win for SOL that I mentioned.”
At the time of writing, Solana is down 4.57% and is trading at $38.67. With Ethereum priced at $1,821, SOL is currently equal to 0.02123 ETH.
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Featured image: Shutterstock/Vadim Sadovski/solvertv