Well-respected economist Alex Krüger says Ethereum (ETH) challenger Solana (SOL) is likely positioned for a rally.
Krueger tells his 150,500 Twitter followers that he is bullish on Solana as the altcoin is likely to mimic the pattern of the Yearn.Finance (YFI) automatic yield farming protocol in 2020.
“PA [price action] reminds me of YFI October 2020.
SOL Dec/2022 = YFI Oct/2020 (on a smaller scale). That’s what I was talking about.”
Source: Alex Krueger/Twitter
At the time of writing, SOL is trading at $9.84, up over 22% from its 2022 low of $8.03 registered on Dec. 30. While Solana has managed to recover significantly over the past few days, it remains over 96% below its all-time high, which SOL set in November 2021.
While Krüger expects SOL to recover in the coming weeks, he says He doesn’t see Solana igniting big upswings.
“Open interest and very tight funding tell me to expect a return to mean. Not as violent as YFI. Alameda is no longer there to squeeze people.”
Kruger too warns that it is highly likely that Solana will never revisit its all-time high of around $260.
Meanwhile, market research firm Santiment has a less optimistic view of Solana’s future share price development.
Per Santiment, Solana crashed 73% over the past eight weeks due to fear, uncertainty and doubt (FUD) from the FTX collapse.
“FUD is strong against the once thriving asset, but there seems to be pretty good justification for development activity to stall.”
Santiment adds that a technical indicator shows that interest in Solana is waning.
“Other glaring issues suggest trading volume is at a yearly low and this asset just doesn’t seem to have many signs of ‘light at the end of the tunnel’. While nothing is a guarantee in crypto, the probabilities suggest that SOL is a difficult asset to have an argument to hold on to at this point.”
Source: Santiment
Ethereum founder Vitalik Buterin also interjects Solana, saying The blockchain could have a future.
“Some smart people tell me there is a serious smart developer community in Solana and now that the terrible opportunistic money people have been washed out the chain has a bright future. Hard to tell from the outside, but I hope the community gets its fair chance to thrive.”
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