A popular analyst known for his deep-dive research is laying out what might be on the horizon for a top Ethereum (ETH) competitor.
In a new strategy session, the pseudonymous host of Coin Bureau known as Guy tells his 2.09 million YouTube subscribers that he thinks layer-1 protocol Solana (SOL) could double in price if the broader altcoin rally keeps on rolling.
“SOL’s price action is also looking interesting from several angles. In terms of raw price action, SOL could potentially pull a 2x if the current recovery rally continues. This doesn’t sound like much, but if the rally does continue, it would be a larger percentage gain than other large cap altcoins.
That’s why there’s some legitimacy to [FTX CEO] Sam Bankman-Fried’s remark that Solana is underrated. There’s some more evidence to suggest that SOL could see a serious rally if the current crypto market momentum continues.”
The analyst also discusses Ethereum’s transition to a proof-of-stake (PoS) consensus mechanism that’s scheduled for mid-September. He believes the prospect of glitches or outright failure is sparking interest in several other ETH rivals, including Avalanche (AVAX) and NEAR Protocol (NEAR).
“Some of you may have noticed that Solana, Avalanche, Near Protocol and other so-called Ethereum killers have been rallying as the Merge approaches. This is no coincidence, as there are many traders who are likely trying to hedge their portfolios in case something goes horribly wrong with the Merge.”
Guy concludes by examining SOL’s price on the ETH trading pair, observing that Solana appears to follow a pattern of troughs and surges where a peak might coincide with the upcoming Ethereum Merge.
“Take a look at the SOL versus ETH chart on the weekly. Do you notice anything? Call me crazy, but I see a pattern where SOL loses value relative to ETH for around five to six weeks at a time, before seeing a one-to-three-week rally against ETH.
It’s been six weeks of decline, and with the Merge less than a month away, we could see another multi-week rally against ETH, all while ETH is simultaneously gaining in value relative to BTC [Bitcoin], and hopefully in fiat terms, too. This would translate to that 2x gain for SOL I mentioned.”
At time of writing, Solana is down 4.57% and trading for $38.67. With Ethereum priced at $1,821, SOL currently equals 0.02123 ETH.
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Featured Image: Shutterstock/Vadim Sadovski/solvertv