Solana (SOL) Tech Analysis Metrics Ultra Bullish, But Be Careful: Opinion

A number of technical analysis (TA) indicators make Solana (SOL) enthusiasts feel optimistic, but major announcements coming might affect SOL’s performance. Here’s who should be particularly vigilant, and what might be next for SOL’s performance in the midterm.

Solana (SOL) technicals look super bullish, crypto veteran says

Solana (SOL), the core native cryptocurrency of the eponymous proof-of-history blockchain, is witnessing a triple bottom and a descending triangle forming on the four-hour time frame amid the descending trading volume. This combination hints at a potential explosive upsurge, Abra’s Bill Barhydt says on X.

Thoughts on $SOL

Triple bottom and descending triangle forming on 4H on lower volume. The rubber band is winding up super tight for an explosive move IMO. In a vacuum the technicals are super bullish.

BUT…
Macro news (cc @CryptoHayes & reverse repo liquidity) will still… pic.twitter.com/WCN1OdA4xF

— Bill Barhydt (@billbarX) January 5, 2024

At the same time, the coming macro news in crypto might overcome the power of TA indicators, so, those trading SOL on a daily basis should stay vigilant.

Besides volume and TA patterns, the Solana (SOL) ecosystem is affected by a number of positive catalysts, including growing stablecoin volume, advanced scaling and growing developer support.

Finally, Barhydt concluded that this setup might be repeated in the next 18-24 months.

In the previous year, Solana’s (SOL) ecosystem TVL increased by 600% and eclipsed $1.5 billion in equivalent for the first time since mid-August 2022.

In the last days of December 2023, Solana (SOL) outperformed its key rival Ethereum (ETH) in a number of crucial metrics, including the likes of aggregated DEX volume, activity indicators and so on.

Solana (SOL) meme coins exploding

Also, Barhydt retweeted a thread by renowned Web3 investor Kyle Samani of Multicoin Capital. Samani emphasized that Solana (SOL) in early 2024 might be the first example of a smart contract platform solving many problems in DeFi:

One very important thing has changed. There is now incontrovertible proof that the Solana network can run *at scale*: 1) while maintaining ~0 fees for normies; 2) without falling over; 3) without any crazy DeFi implosions/hacks/cascading liquidations/etc (…) This is not just a function of internal benchmarks. This is real world production performance

The recovery of Solana’s (SOL) ecosystem is accompanied by a series of crazy rallies of Solana (SOL) meme coins. The fastest-growing one, MYRO, named after Raj Gokal’s pet dog, added almost 400% in the last seven days.

As of today, Jan. 6, 2024, MYRO is close to surpassing Dogwifhat (WIF) by market cap and replacing it as Solana’s (SOL) second largest meme coin.

Source