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Raoul Pal, founder of Real Vision, former Goldman Sachs executive and macroeconomic expert, recently shared his optimism about Solana (SOL) in the latest issue of the Global Macro Investor (GMI) newsletter. Drawing on his expertise in technical analysis, Pal remains convinced that Solana is on the edge of significant downside.
Solana trend reversal
Solana (SOL), a cryptocurrency that rivals Ethereum (ETH) and is ranked 11th by market capitalization, seems to have completed its consolidation period and is preparing to start a bullish trend.
Let’s go back in time to understand Solana’s evolution. In November 2021, its price reached a very high, approaching $260, which gave investors a feeling of empowerment. But since then, a bearish dive followed, causing the price of the SOL token to drop to nearly $20. In other words, a devaluation of about 92.6%. However, all hope is not lost.
Raoul Pal, a former Goldman Sachs executive and macroeconomics expert, is keeping spirits up and remains optimistic about Solana’s future. According to his analysis, this cryptocurrency is currently in a consolidation phase after successfully crossing the inverse head and shoulders pattern, heralding a reversal of the trend.
” Solana appears to be preparing for further upside after a period of consolidation following a reversal breakout of the head and shoulders pattern in April. Solana has been a strong GMI pick this year and is up about 150% year to date… says Pal.
In fact, since the beginning of 2023, Solana has followed a general upward trend. Its price has increased from $9.87 to $19.50 at the time of writing, registering a growth of about 120%.
Global equity forecasts
Apart from Solana, Raoul Pal discusses global equities in his newsletter. According to him, these stocks seem to be close to a rally, creating a bullish pattern.
In particular, if the All-Country World Index (ACWI) manages to break a key resistance level, global equities could reach new highs. The ACWI Index measures the performance of large and mid-cap stocks in developed and emerging markets.
” Global stocks represent the DXY Index (US Dollar Index) and appear to be forming a significant bottom in the form of a head and shoulders pattern. We are approaching a potential breakout, and the small bullish pennant that formed on the right shoulder appears to be the impetus needed to cross the line. If we exceed 94, the measured movement will take us to new heights…”
However, it should be emphasized that these views are in no way investment advice. It is essential to do your own thorough research before you venture into the world of cryptocurrencies. Before you get your first cryptos, take the time to educate yourself, analyze trends and understand the potential risks associated with them.
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I am passionate about Bitcoin, I like to explore the intricacies of blockchain and cryptos and I share my discoveries with the public. My dream is to live in a world where everyone is guaranteed privacy and financial freedom, and I firmly believe that Bitcoin is the tool that can make that happen.
The views and opinions expressed in this article are the sole responsibility of the author, and should not be considered investment advice. Do your own research before making any investment decision.