Top Analyst Spots Bullish Signs For Struggling Solana : Says SOL Could Surge “10x”- Here’s Why

February 29, 2024

Solana Shows Imminent Breakout from Inverted Head and Shoulders Pattern; Analyst Predicts SOL Could Reach This Level

Top cryptocurrency analyst Jake Gordon has shared an in-depth Solana (SOL) review in a YouTube video analysis, highlighting its problems and future upside potential.

What you'll learn 👉

Ongoing Supply Inflation Diluting Value

Gordon points out that Solana’s supply has inflated significantly, by 68% over the last three years. As he states, “Solana inflates currency and the fees burn becoming insignificant… non stakers pay for inflation.” This high inflation rate raises concerns among investors about the value of their holdings being diluted over time.

However, Gordon suggests that Solana can still deliver strong returns thanks to other factors. “Despite the tokenomics, Solana can still chase significant gains… it’s about understanding the market dynamics,” he remarks.

Reliability & Network Issues Undermine Trust

Solana has suffered from network outages that affected reliability and accessibility. Gordon acknowledges these downtimes have impacted trust in Solana. “Solana’s network issues have led to reliability problems which hurt its reputation,” he comments.

However, he states that ongoing improvements to infrastructure could mitigate downtimes going forward. “Upgrades to Solana’s systems should reduce further crashes as capacity scales up,” Gordon predicts.

Centralization Leads to Criticism

The codebase and control over changes have been criticized as being too centralized. Gordon concedes the validity of arguments over unilateral control. “The centralization of Solana’s code and being changed unilaterally is a major critique,” he allows.

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However, he emphasizes Solana’s strengths, like high transaction speeds, low fees, and its rapidly growing DeFi and NFT ecosystem. “High transactions per second, low fees, tons of DeFi products, huge ecosystem and team – these are the reasons Solana will still fly,” Gordon declares.

Significant Future Growth Potential

In his video, Jim discusses the potential of Solana, suggesting that despite its current challenges, it could experience a significant surge in value. He states, “Solana sucks but it’s still going to 10x,” highlighting a bullish outlook for SOL despite its issues.

Gordon also highlights a bullish technical pattern forming in Solana’s price chart. “SOL Cup and handle breakout Target remains $150,” he tweets, referencing the rounding bottom and breakout that could propel Solana to retest its all-time highs.

Furthermore, despite tokenomics and market saturation worries, Gordon sees investment merit in Solana due to the robust technological base powering real-world usage and adoption. Solana could capture a significant market share in decentralized finance and non-fungible tokens.

Gordon advises, “Invest wisely in the Solana ecosystem, looking at smaller projects with higher risk but higher reward potential.”

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