Recent options data paints a concerning picture for BTC and especially ETH. According to QCP Capital’s latest analysis of Deribit options trading, traders are expecting a downward trend in the short term for the prices of the two major cryptocurrencies, as well as the market as a whole.
“Given the velocity of last week’s dip, the market is still very cautious about downside risk,” QCP shared with Coindesk in their recent correspondence. In fact, BTC could drop to $50,000 or even $40,000, according to Deribit’s own analyst, Tony Stewart.
However, Solana is one major cryptocurrency that traders currently identify as a relatively safe bet during this time of market turmoil. The price of Solana increased by 2.90% in the last 24 hours, which was mostly in line with the rest of the crypto market. According to a product lead from Nexo, Kristian Haralampie, SOL could end up being one of the beneficiaries of a potential upcoming market dip:
QUOTE: “Traders are making significant moves to protect downside risk in Ethereum, while simultaneously showing appetite for upside potential in Solana. This divergence paints a picture of a market hedging its bets.”
What could this mean for SOL?
Options data is not the only indicator that speaks to Solana’s bullish potential. A prominent cryptocurrency trader who goes by the name AltcoinSherpa on X recently highlighted SOL on his watchlist of longer-term buys.
“$SOL from 130-110 still good imo,” he wrote, indicating that current price levels might present a good buying opportunity, especially for those focused on the longer term.
SOL price prediction chart. Source: CoinCodex
Another set of data that supports a scenario that will result in SOL’s upward trend comes from CoinCodex. According to their Solana price prediction algorithm, we can expect the cryptocurrency to record a very healthy 14.76% increase over the next 30 days, which would elevate the price to above the $154 mark.
In fact, the algorithm forecasts that the coin’s price could peak as high as $342 on a longer time scale, which would establish a new all-time high for Solana (current ATH of $259 was reached in November 2021).
While there’s plenty of data that speaks to Solana’s potential breakout in the coming weeks and months, it’s worth noting that the market can change on a whim, so it’s best to take any prediction with a grain of salt. That’s especially true right now, where nobody can really be sure how the upcoming Fed’s rate cut and political turmoil in the US will impact the markets.
