Solana Will Suck Liquidity From Altcoin Market Over Next Few Days/Weeks, Says Analyst

Solana has reaxhed its all time high
Solana has reaxhed its all time high

Earlier today, as nearly 80% of the top 50 cryptoassets by market cap were in the red, Solana ($SOL) was putting in another dazzling performance, surging to new all-time highs with a double digit percentage gain vs USD.

$SOL is the native token of the Solana blockchain. Solana is “an open source project implementing a new, high-performance, permissionless blockchain” that is maintained by the Geneva-based Solana Foundation.

According to data by TradingView, on crypto exchange FTX, since the start of this week, the $SOL price has surged 47.18%.

In fact, on Monday (August 16), Solana managed to set a new all-time high of $65.60 (at 13:20 UTC), smashing the previous all-time high of nearly $56 that was set on May 18, thereby reaching a market cap of around $18 billion, which allowed it to enter a special place: “the top 10 most valuable (by market cap)” club.

Even more impressively, as you can see from the one-month SOL-USD price chart (based on trading data from FTX) below, in the past one-month period, $SOL is up over 194%.

One-Month SOL-USD Price Chart (FTX) by TradingView

As for the year-to-date (YTD) period, $SOL is up an incredible 4,141% since the beginning of 2021.

YTD SOL-USD Price Chart (FTX) by TradingView

$SOL’s high impressive recent price action promoted pseudonymous crypto analyst, trader, and influencer “Altcoins Sherpa” to say earlier today that he believes that right now Solana is the hottest cryptoasset in the altcoin market and that it is going to outperform every other altcoin over the next few days/weeks.

$SOL: Welcome to the next few days/weeks where this thing sucks liquidity from the entire altcoin market and gives no fucks to other market conditions. This will bounce faster than anything else and dips are for buying. #Solana pic.twitter.com/bAZ2ASwWcz— Altcoin Sherpa (@AltcoinSherpa) August 18, 2021

Another pseudonymous crypto analyst that seemed to agree with this assessment was “Smart Contractor”, who said that Solana’s performance reminded him of how in April the $DOGE price was “pumping” as though Dogecoin had captured the entire mindshare of the crypto community.

Damn $Sol literally like the only coin pumping right now.

Feels like when doge was pumping in april where it just sucked in all the liquidity and nothing else could move.

Feels good if you have a bag, bad if you don’t.— Bluntz (@SmartContracter) August 18, 2021

Crypto analyst Scott Melker (aka “Wolf of All Streets”) said that SOL-BTC has entered the price discovery zone.

$SOL / $BTC

Retest of all time high as support complete.

Price discovery. pic.twitter.com/RlecjJpKWn— The Wolf Of All Streets (@scottmelker) August 18, 2021

Crypto influencer “The Crypto Monk” said that he remembered buying $SOL back in January when it was trading below $3 (here he is referring to the first three weeks of the year when $SOL was trading between $1.84 and $3.00) and that investors and traders should realize that those who trade with “strong conviction” and focus on higher timeframes (i.e. at least a few months) have the chance in the crypto space to create “generational wealth.”

The good thing is that it’s not really an exception in crypto.
Plenty of winners like this have popped over the years.
It just takes a few chad coins like this to increase significantly your net worth.— The Crypto Monk ⛩️ (@thecryptomonk) August 18, 2021

And finally, John Johnson, Engineering Manager at 0x Labs, pointed out that $SOL doing so well also means that development teams who received their grant money in $SOL “early on” now pretty decent size runways, which means more opportunity for them to take chances and experiment with new ideas.

one second order effect about $SOL pumping is that a lot of the dev teams working on Solana took their grants in $SOL tokens early on and are now way up (some >10x!). extends runway significantly which allows room to scale/find PMF/experiment freely! wouldn’t bet against it— John Johnson 🍵 (@johnjohnson) August 18, 2021

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