Macro guru Raoul Pal says that Ethereum (ETH) competitor Solana (SOL) will not be finished rallying even after hovering in current weeks.
In a brand new version of Pal’s International Macro Investor (GMI) publication, the previous Goldman Sachs government says that Solana entered an uptrend after breaking out of a traditional bullish sample.
“SOL broke out from its inverse head-and-shoulders last month and is now up over 475% year-to-date. This has been one of our core trades at GMI (Global Macro Investor) this year and has worked out really well.”
Nevertheless, he warns that SOL will probably retrace after the sudden surge based mostly on the relative power index (RSI), a broadly used momentum indicator that goals to decide if an asset is overbought or oversold.
“Short-term, SOL is overbought with an RSI of 89 (highest since September 2021), so we should expect to see some selling pressure soon. This should not surprise anyone – we’re up 240% in two months!”
Zooming out, Pal expects Solana to proceed rallying based mostly on SOL’s broader historic worth sample.
“But then you look at this [chart] and realize it’s ALL still to play for.”
He additionally means that the overall market capitalization of Solana and different altcoins is in an uptrend after breaking out of a bullish falling wedge sample.
“And this chart too. Blimey.”
Solana is buying and selling for $52.53 at time of writing, down 6.3% within the final 24 hours.
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