Veteran analyst Peter Brandt believes Solana could spike 100% against Ethereum, pointing out multiple favorable factors for the former.
Solana’s recent performance against Ethereum has triggered reactions from market watchers, including Brandt. In a recent analysis, Brandt highlighted the potential for Solana to make significant gains against Ethereum.
Solana’s Accumulation Phase
The SOL/ETH weekly chart shows a clear breakout from a prolonged accumulation phase. This accumulation phase, which lasted over a year, featured a range-bound movement, with the price oscillating between approximately 0.0350 and 0.0500 ETH.
The breakout occurred as SOL surged past the key resistance level at 0.0500 ETH, which had acted as a ceiling for the cryptocurrency since early 2022.
Market analysts have pointed out the significance of this breakout. Historically, such breakouts from long-term accumulation phases often lead to strong upward movements, as they indicate a shift in market sentiment.
Solana Targets 100% Rise Against Ethereum
The volume profile also bolsters the bullish outlook, with a notable increase in trading volume during the breakout. A massive surge in volume suggests that the breakout is likely to be sustained, as it indicates strong buying interest.
Amid these bullish movements, reports confirm that Brazil has welcomed its first spot Solana ETF products. The report triggered a spike in Solana’s price to $163, contributing to its gains against Ethereum.
Also, the moving averages (MA) on the chart provide additional confirmation of the bullish trend. The 18-week MA has recently crossed above the 8-week MA, a bullish “golden cross.”
The next key level to watch is the 0.1100 ETH mark, which represents a potential price target based on the height of the previous range. If SOL continues its upward trajectory, this level could be reached in the coming months, representing a 100% gain from the current price level.
Brandt Identifies Factors Supporting Solana’s Rise
In addition to the technical aspect, Brandt’s bullish outlook for Solana is based on several positive fundamental factors. First, Brandt pointed out Ethereum’s ongoing issues. He criticized Ethereum for being cumbersome, “flawed” and expensive.
According to him, Ethereum’s claims of decentralization are questionable. Brandt suggested that Ethereum is constantly in need of fixes, implying that it might not be as robust as its supporters believe. He compared Ethereum’s frequent need for upgrades and improvements to U.S.-built automobiles.
On the other hand, Brandt praised Solana for being user-friendly and having a solid foundation. He emphasized that Solana’s technology and infrastructure are better suited to meet the needs of the market.
Meanwhile, in the short term, the SOL/ETH ratio spiked considerably to a peak of 0.0643 yesterday. While this marked its all-time high value, Solana faced intense resistance at this level. Consequently, SOL has recently dropped against Ethereum, down 2.66% today.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
