Solana Summer Is Here

Louis Sykes
December 11, 2023

From the Desk of Louis Sykes @haumicharts

Remember Solana Summer?

We have fond memories of those times.

But it all changed about two years ago when the crypto market peaked and collapsed.

Going from 250 to the single digits in a little over a year, everybody thought it was the end of Solana... and everything else.

"It's never going to recover."

"It's all over for crypto."

Now look at us...

Solana looked awfully similar to Ethereum when it started shaping up following the onset of the pandemic. Just like when Ethereum fell into that disastrous drawdown, people thought its only place would be among the other dead dinosaur coins.

Then it went on to rally 5,000%.

Not only was Solana's drawdown worse than Ethereum experienced in the 2018 winter, but it lasted another three months.

Tell me these two charts don't look similar...

If Solana were to go on to achieve what Ethereum managed to do last cycle, we're talking Solana at 600.

Do you think it can go on to achieve that?

If this is truly the beginning of a new crypto bull market, we certainly don't think it's off the table. With Solana breaking out of this coil above 60, prices have gone parabolic.

If this were any other asset class or market environment, we'd say that this is overextended and the risk-versus-reward isn't in our favor.

But this is a burgeoning crypto bull market we're talking about; when money rushes into this space, dip-buying opportunities can be hard to come by.

And, lately, that's exactly what we're seeing. Crypto leaders just keep trucking higher.

In the case of Solana, price coiled between the mid-50s and 60s for almost a month before breaking higher on Friday. 

We think the resolution of this short-term continuation pattern offers a great entry.

If Solana's above 60, we're betting it heads back to its all-time highs.

And, longer term, we certainly don't think Solana at 600 is off the table.

It won't get there in a straight line, but it's a very real possibility 

Just like 95% drawdowns in crypto should not be a tail risk but rather a core assumption in your risk models, market rallies in excess of 1,000% are a standard feature of these bull markets.

Where skeptics once mourned Solana's apparent demise, we now stand on the precipice of possibility.

Extraordinary gains are not outliers but the very heartbeat of this asset class.

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Thanks for reading and please let us know if you have any questions!

Allstarcharts Team

 

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