Widely followed economist Alex Kr\u00fcger says that Ethereum (ETH<\/a>) challenger Solana (SOL<\/a>) is likely positioned for a rally.<\/p>\n Kr\u00fcger tells his 150,500 Twitter followers that he\u2019s bullish on Solana as the altcoin is likely mimicking the pattern of automatic yield-farming protocol Yearn.Finance (YFI<\/a>) in 2020.<\/p>\n \u201cPA [price action] makes me think of YFI October 2020.\u00a0<\/em><\/p>\n SOL Dec\/2022 = YFI Oct\/2020 (in smaller magnitude). This is what I was talking about.\u201d<\/em><\/p>\n At time of writing, SOL is trading at $9.84, up over 22% from its 2022 low of $8.03 registered on December 30th. Although Solana has managed to bounce significantly in the last couple of days, it remains down over 96% from its all-time high, which SOL hit in November 2021.<\/p>\n While Kr\u00fcger expects SOL to rally in the coming weeks, he says<\/a> he does not see Solana igniting huge upswings.<\/p>\n \u201cOpen interest and funding very stretched tell me to expect some mean reversion. Not as violent as with YFI. Alameda not there any longer to squeeze people.\u201d\u00a0<\/em><\/p>\n Kr\u00fcger also warns<\/a> that it is very likely that Solana will never revisit its all-time high of around $260.<\/p>\n Meanwhile, market intelligence firm Santiment has a less optimistic view of Solana\u2019s future price action.<\/p>\n Per Santiment, Solana plummeted<\/a> 73% in the past eight weeks due<\/a> to fear, uncertainty and doubt (FUD) from the FTX collapse.<\/p>\n \u201cThe FUD is strong toward the once thriving asset, but there appears to be some pretty good justification with development activity coming to a halt.\u201d<\/em><\/p>\n Santiment adds that one technical indicator shows that interest in Solana is waning.<\/p>\n \u201cOther glaring issues point to trading volume being at year-low levels, and this asset just doesn\u2019t seem to have a lot of signs pointing to any \u2018light at the end of the tunnel.\u2019 Although nothing is a guarantee in crypto, probabilities point to SOL being a tough asset to have an argument for hanging on to at this time.\u201d<\/em><\/p>\n Ethereum founder Vitalik Buterin is also weighing in on Solana, saying<\/a> the blockchain may have a future.<\/p>\n \u201cSome smart people tell me there is an earnest smart developer community in Solana, and now that the awful opportunistic money people have been washed out, the chain has a bright future. Hard for me to tell from outside, but I hope the community gets its fair chance to thrive.\u201d<\/em><\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get crypto email alerts delivered directly to your inbox <\/span><\/em>![\"\"](\"https:\/\/dailyhodl.com\/wp-content\/uploads\/2022\/12\/solana.png\")
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