Taking Profit on Solana: Why Crypto Analysts are Cautious on SOL as Meme Kombat Heats Up

Solana (SOL) has seen an incredible surge in price over the past few months. Having started the year trading around $11 SOL broke past yearly all-time highs this week, hitting a peak of $121 before correcting lower.

This represents unbelievable gains of over 800% from June lows of around $15. However, despite SOL’s astronomical rise, some analysts are raising warnings that further meaningful upside could now be limited given its enormous market valuation.

SOL’s rapid ascent through the latter half of 2023 has amazed onlookers and turned many previously skeptical investors into believers in Solana’s potential. The network’s reputation for scalability was validated as it demonstrated being able to handle massively higher transactions per second than primary competitors like Ethereum.

But as is so often the case following such a parabolic move, doubts are now emerging over SOL’s ability to sustain its current lofty heights.

One such doubter is prominent crypto analyst Gordon with over 400,000 Twitter followers. In a recent tweet, Gordon outlined taking profits on his entire SOL position after it delivered a 15x return:

“Just sold all of my $SOL. A 15X is fine with me, especially as it’s market cap is now $50B. It could run higher, but now I have a lot of capital to buy more BTC/ETH and look for another 50X+ SOL won’t pull another 10X from here so I’m happy to be out.”

By citing Solana’s enormous $50 billion market cap valuation, Gordon is voicing his opinion that much of SOL’s upside potential has already been realized.

Taking profits allows him to reinvest that capital into other cryptocurrencies like Bitcoin and Ethereum that may still offer outsized potential returns. His sentiment that it will be extremely difficult for SOL to deliver another 10x gain from current levels given its maturity echoes concerns of other analysts watching from the sidelines.

In their technical analysis on TradingView, FXOpen highlights Solana’s significant achievements in 2023, with the network becoming the fir

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Author: BeInCrypto Team

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