'Ethereum rival' Solana breaks below $150...poised for a big move?

▲ Solana(SOL)

The price of Solana (SOL), an altcoin considered a key rival to Ethereum (ETH), has plummeted to below $150. However, cryptocurrency analyst Altcoin Sherpa has a bullish outlook for Solana.

AMB Crypto, DailyHodl, and other news outlets reported Altcoin Sherpa's view that Solana is currently undergoing price consolidation in the $185 and $120 range. This consolidation phase to balance the market after a sharp price increase is a common trend in the cryptocurrency market, and is often interpreted as a preparation for a larger uptrend.

Altcoin Sherpa points to $138.37, which is the 38.2% Fibonacci retracement level of Solana's price, as a key turning point for the cryptocurrency. If the price falls below $138.37, the 50% Fibonacci retracement level and 61.8% Fibonacci retracement level will act as additional limits to stabilize the price.

Reporting on the outlook for altcoin Sherpa, AMB Crypto noted that Solana's network activity metrics recently recorded a positive trend.

The media outlet explained that an analysis of Solscan data showed that the number of active addresses on the Solana network increased from less than one million to more than 1.1 million in a week. The increase in active addresses indicates increased user engagement or activity in preparation for future transactions, which could lead to increased demand for Solana."

The number of active addresses has increased to more than 1 million in a week.

On the other hand, crypto analyst CredibleCrypto said that if Solana fails to hold above $140, it could plunge to $115. He sees $140 as a likely area where a price rebound could begin.

However, he noted that Solana's price behavior is similar to that of Bitcoin (BTC), and that a temporary bounce is likely given that BTC is currently near its lows.

However, he added that the bounce could be temporary.