Is Solana Preparing For Liftoff Or Meltdown? Analysts Weigh In

After the recent market pump, Solana (SOL) recovered a vital support zone. Consequently, analysts have debated whether the altcoin is poised for a liftoff to a latest all-time high (ATH) or about to face a meltdown.

Analysts Fear SOL’s Top Is In

After recovering the $160 support zone over per week ago, Solana reached heights not seen for the reason that starting of April. SOL neared the $190 resistance level but didn’t surpass it. As an alternative, the token’s price hovered between the $180 and $170 mark before returning near the $160 support zone over the weekend.

Despite underperforming in comparison with Bitcoin (BTC) and Ethereum (ETH), the token reached a latest ATH in a key metric during this cycle. In March, Solana’s market capitalization surpassed its previous ATH, reaching a market cap of $93 billion.

Last week’s pump saw SOL surge by over 56% from its price through the May 1 retrace, propelling its market cap above its 2021 ATH to levels resembling March’s ATH. Nonetheless, some crypto analysts see the potential for a meltdown ahead for Solana.

Crypto analyst Bluntz posted a video SOL’s macro chart. Per the post, the analyst considers that “SOL is completed, SOL is exhausted, and it’s probably time for ETH to catch up, which can probably be the last leg of the bull market.”

The analyst considers the macro chart to display some concerning signs that suggest the token has “probably topped.” Per Bluntz’s chart, SOL had a five-way climb to its cycle high of $210 in March. Despite not making the worth ATH on account of inflation, the analysts highlighted Solana’s market cap ATH as a key factor.

Solana’s macro chart. Source: Bluntz on X

Furthermore, the crypto trader identified a five-way decline since March’s highs, followed by a three-way move up. To the analyst, this means that Solana is “exhausted” because it’s beginning to struggle.

Based on Bluntz, there’s a high probability that the highlighted performance will lead to a “macro lower high.” Moreover, he forecasted SOL’s price to retrace below the $100 mark.

Is Solana Poised For A Liftoff Or A Meltdown?

Similarly, pseudonym analyst Credible issued a warning regarding SOL’s future. To the analyst, “coins like $SOL are only in larger distribution structures now.” Nevertheless, Credible considers that BTC’s strength will relieve SOL because it initially “drags the entire market up.”

The analyst agreed with Bluntz’s prediction, stating that it’s “ultimately where we’re headed,” but considers there’s an excellent probability Solana sees highs above March’s mark “before the actual meltdown.”

Nonetheless, some crypto analysts disagree with the gloomy forecast. DocXBT asserted he has “seen numerous terrible Solana takes recently.” The analyst believes the token is “holding each day trends” and displays positive support and resistance levels.

SOL’s performance during this cycle. Source: docXBT