Solana Passes First Test, Trader Cautious on Further Gains

Solana, a leading competitor to Ethereum, has caught the attention of a prominent cryptocurrency trader who sees potential for further gains but also expresses caution. The trader, known as Credible Crypto, has over 460,000 followers on the social media platform X, and recently shared their analysis on Solana's price action.

According to Credible Crypto, Solana has successfully passed the "first test" by bouncing off the "must-hold" level, which is roughly between $165 and $190. This bounce led to a new all-time high of approximately $293. The trader believes that Solana is likely to climb higher, but they have reservations about going long on the fifth-largest crypto asset by market cap at current levels.

One of the main concerns for Credible Crypto is the SOL/USD pair's price discovery phase and the SOL/BTC pair's resistance level. The trader notes that the SOL/BTC pair is currently sitting under a zone of "massive" resistance at around 0.003 BTC. This resistance could either slow down Solana's upward movement or cause a more significant rejection and pullback.

To become fully bullish on Solana, Credible Crypto believes that the 0.003 BTC resistance zone needs to be flipped. Until that happens, the trader considers it the most likely place for a rejection and thinks that the odds of a pullback are relatively high.

At the time of writing, Solana is trading at $237 (0.0022685 BTC). While the trader sees potential for further gains, they are cautious about the current price levels and the potential resistance from the SOL/BTC pair.