Raoul Pal, the influential figure behind Real Vision and a prominent voice in the world of cryptocurrency, has expressed a highly optimistic outlook on SOL, the native digital currency of the Solana blockchain, a robust smart contract platform.
According to Pal, SOL has exhibited remarkable bullishness throughout the entirety of the year, and he anticipates that its value is poised to double in the near future, particularly if it manages to break through a crucial resistance point.
Pal shared his insights on October 20, noting that SOL has surged by an impressive 171% in the year 2023 alone. Analyzing the technical candlestick patterns, he pinpointed a pivotal resistance level to watch for, which is currently set at $30. In Pal’s evaluation, this level signifies a significant liquidation threshold, based on the prominent “big inverse head and shoulders” pattern discernible in the daily price chart.
In technical analysis, the “big inverse head and shoulders” pattern is interpreted as a signal that the bearish momentum is slowing down, hinting at a potential upcoming uptrend. Typically, this pattern forms when the price registers three lows, with the middle low (referred to as the “head”) being lower than the two adjacent lows (the “shoulders”).
However, as Pal emphasized, the confirmation of an uptrend will only be established when there’s a bullish breakout above the “neckline.” In SOL’s daily price chart, this neckline is positioned at the $30 mark, a psychological level that buyers have been struggling to breach since it was first recorded in July 2023. Notably, this level also represents the highest price level SOL has reached this year.
While Solana grapples with formidable resistance from the USDT (and technically the USD’s bullish performance), SOL bulls have been making headway against Ethereum (ETH) and Bitcoin (BTC). As of October 2023, SOL bulls seem to be recovering from the losses incurred in 2022 when compared to these two leading cryptocurrencies by market capitalization.
To underscore this noteworthy development, SOL is currently trading at new highs for 2023 in relation to Ethereum, successfully reversing previous losses and displaying a positive trajectory as bullish sentiment gains momentum. SOL bulls have managed to surmount two critical liquidation zones against Ethereum, both at spot levels, which were originally observed in January and July. Despite this, Ethereum still holds its ground from a broader perspective, maintaining a 70% lead over SOL, as depicted by the SOLETH daily chart.
Pal’s enthusiasm for Solana extends to the belief that the coin could potentially catalyze a “Crypto Summer” in 2024. This upward trend may be further fueled by a series of significant developments, especially partnerships that have been recently forged.
In early September, global payment processing giant Visa introduced USDC settlement on the Solana blockchain, citing the network’s remarkable throughput capabilities. Through this extension, Visa aims to enhance the speed of cross-border settlements and provide a modern, efficient option for clients to seamlessly send and receive funds from Visa’s treasury.