Macro guru Raoul Pal says that Ethereum (ETH) competitor Solana (SOL) is not done rallying even after soaring in recent weeks.
In a new edition of Pal’s Global Macro Investor (GMI) newsletter, the former Goldman Sachs executive says that Solana entered an uptrend after breaking out of a classic bullish pattern.
“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.”
However, he warns that SOL will likely retrace after the sudden surge based on the relative strength index (RSI), a widely used momentum indicator that aims to determine 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 continue rallying based on SOL’s broader historical price pattern.
“But then you look at this [chart] and realize it’s ALL still to play for.”
He also suggests that the total market capitalization of Solana and other altcoins is in an uptrend after breaking out of a bullish falling wedge pattern.
“And this chart too. Blimey.”
Solana is trading for $52.53 at time of writing, down 6.3% in the last 24 hours.
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