In recent discussions with renowned global macro investor, Raoul Pal, he provided valuable insights on the current state of the cryptocurrency landscape and what 2024 holds.
A Quiet Yet Positive Landscape
Despite seeming tranquility in the crypto and traditional markets due to reduced liquidity, Pal highlights that the cryptocurrency domain has seen a substantial growth of 50 to 100 percent this year. The broader sentiment, however, feels less enthusiastic because of the market’s stagnant performance since April.
Current market conditions are influenced by central banks’ monetary policies. With signs of a slowing economy, rising unemployment, and declining inflation, there are anticipations of changes in these policies. Pal predicts that central banks might halt rate increases, pause quantitative tightening, and even consider rate cuts as 2024 approaches. This changing stance on liquidity could shift the financial momentum in the coming year.
Why Pal is Bullish on Solana?
The significant integration of Solana’s blockchain into Visa’s pilot for blockchain transactions has caught the attention of many. Pal credits Solana’s success to its speedy transaction capabilities and its distinctiveness from Ethereum.
Moreover, its collaborative and inclusive ecosystem, spearheaded by influential figures like Tolly, fosters a dynamic environment for developers and users alike. The synergy created has enabled Solana to consistently deliver exceptional performance, especially in a volatile and rapidly evolving space.
As of the time this article was being written, SOL’s price stands at $19.23, and it’s in the red on the weekly chart. Solana has had a wild price ride in 2023. It reached its highest yearly price of $32.13 in July but then began to drop. This week, it went as low as $18, a key price level that’s often acted as a safety net this year, except for a short time in June.
Looking at the weekly trends, there are signs that the price might continue to drop since the Relative Strength Index (RSI) is also going down. However, if we zoom into the daily chart, things look a bit brighter. SOL’s price has once again risen from a rising support line for the third time this year.