Analyst Highlights SOL as Potential Next Big Investment Following ETH
Solana's SOL price increased by 7.68% to $208.24 in 24 hours, outperforming the broader market where the CoinDesk 20 Index rose by 2.89% and total crypto market cap gained 1.6%. Key points include:
- Analysts attribute Solana's performance to technical momentum and structural demand.
- Scott Melker indicated SOL is at a critical level against bitcoin, suggesting potential for outperformance.
- Lark Davis identified three drivers: growth of SOL-based treasury companies, potential approval of a spot SOL ETF by the U.S. SEC, and rising institutional interest.
- Altcoin Sherpa advised caution, suggesting profit-taking between $205 and $215 due to potential retracements after short-term rallies.
- Sentora reported over $820 million in SOL held in corporate treasuries, with adoption potentially mirroring ETH's past growth.
- Chorus One announced a new Solana validator, emphasizing institutional contributions to network infrastructure.
Technical highlights show:
- SOL rose from $191.67 to $204.62 between Aug. 26 and 27, marking a 7% gain.
- Strong support established at $193.92 with heavy trading volume.
- Resistance noted near $205.65, with sustained price above $202.00 indicating institutional buying.
- Recent trading saw a dip to $202.95 before hitting an intraday high of $205.84.
- Current key support is around $202.82, resistance at $205.84, with bullish momentum targeting $210.00.