Home / Analysis / Crypto / Technical Analysis / Solana To Lead Next Bull Phase According To Raoul Pal – SOL Recovers 8% Over The Weekend

Solana To Lead Next Bull Phase According To Raoul Pal – SOL Recovers 8% Over The Weekend

Last Updated July 1, 2024 3:14 PM
Nikola Lazic
Last Updated July 1, 2024 3:14 PM

Key Takeaways

  • Raoul Pal predicts Solana will lead the next market growth.
  • Solana’s DEX trading volume surpassed Ethereum’s, hitting $1.148 billion.
  • Solana ETFs face regulatory hurdles, but filings could improve approval chances.

Raoul Pal, the CEO of Real Vision and a macroeconomic expert believes that Solana (SOL) will spearhead digital assets’ next significant growth phase. In a recent video update , Pal shared with his YouTube followers that the crypto market is nearing a prolonged period of sustained growth, which he calls the “banana zone.” He anticipates that Solana will play a crucial role in lifting the crypto market out of its current stagnation and into a new bull market phase.

Over the weekend, SOL increased to nearly $150 from a low of $139. This continued an uptrend from June 24, when SOL fell to a low of $122. 

Pal Allocates 90% To Solana

Pal highlights two major developments on the Solana blockchain that bolster his bullish outlook on SOL. The first is NFT compression, which allows for various use cases, such as ticketing and derivatives contracts, at a low cost, enhancing the scalability of NFTs. 

The second is Firedancer, a third-party validation software expected to launch next year and improve Solana’s transaction processing speed, scalability, and efficiency. These advancements have convinced Pal to allocate 90% of his crypto investments to Solana, underscoring his confidence in its potential.

Solana ETFs?

Digital assets investment firm 21Shares has filed for regulatory approval to launch an exchange-traded fund (ETF) tied to the spot price of Solana (SOL), following a similar filing by VanEck. 

Both firms plan to list their Solana ETFs on the Chicago Board Options Exchange (CBOE), pending regulatory approval to amend its rules. 

Alex Thorn, Head of Research at Galaxy Digital, analyzes the regulatory hurdles facing the SEC approval of spot Solana ETFs filed by VanEck and 21Shares. These filings aim to integrate Solana into regulated financial markets but face complications due to the SEC’s view of Solana as an unregistered security. 

VanEck’s proposal is still preliminary and needs more detailed structures. Once initiated, the review process could take up to 240 days. The recent FIT21 Act, clarifying regulatory boundaries between the SEC and the CFTC, could improve the chances of approval for Solana ETPs. Thorn highlights VanEck’s proactive filing strategy as commendable amidst significant regulatory challenges.

Solana Takes Over Ethereum In DEX Trading Volume 

According to DefiLlama, Solana has surpassed Ethereum in daily decentralized exchange (DEX) trading volume, reaching $1.148 billion compared to Ethereum’s $745 million. 

Solana-based DEXes such as Raydium, Meteora, Orca, Phoenix, and Lifinity are among the top 10 by daily trading volume, with Uniswap and PancakeSwap still leading overall. 

SOL Price Analysis 

On March 18, SOL peaked at $210 but sharply declined to $120 by May 1, marking a 43% drop. The price then impressively recovered to nearly $190 by May 21, breaking through a crucial resistance level that had previously served as support.

 

SOL
SOLUSD | Credit: Nikola Lazic/Tradingview

After this recovery, SOL initially showed potential for further gains but soon fell below this critical level. The downturn from May 1 has displayed three distinct waves, indicating a possible prolonged bearish trend. The break below the $160 mark confirmed that the surge to May 21 was merely a three-wave corrective pattern, suggesting the current decline might be part of a larger bearish phase or a complex three-wave correction starting from March 18.

Based on the trajectory of the current increase from June 24, two outcomes are possible. Chart analysis indicates SOL might consolidate below $157, forming a fourth wave before potentially descending to a new low at $102 in its fifth wave, completing a three-wave ABC correction. 

However, if it goes above $157, it has entered the territory of its wave 1 on assumed wave 4, thus invalidating the possibility of a five-wave downtrend. If this happens, SOL completed its corrective phase on June 24 and is now entering a new bullish phase, eyeing a new yearly high. 

Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
Was this Article helpful? Yes No