A widely followed crypto analyst is warning that Ethereum (ETH) competitor Solana (SOL) could experience a sudden market correction.
Pseudonymous crypto analyst Rekt Capital tells Its 363,800 followers on social media platform
“SOL: If history repeats itself, Solana could experience extreme volatility both on the upside above $42.86 (red) and if the rejection is strong, even on the downside volatility as low as $30 (under the purple box ). Will history repeat itself? If so, I’m ready.”
The trader warns that the longer the SOL trades below the $42 range, the greater the chance of a deep correction.
“Solana is already producing some upside wicks above ~$42.86. Stay below this resistance and SOL could see a deeper pullback over time.”
Looking at the trader’s chart, he seems to be referring to SOL’s price action in early 2021, when Solana witnessed a deep pullback after failing to eliminate its resistance around $42.
Solana is trading at $39.56 at the time of writing.
Next, the trader says that Bitcoin (BTC) is likely to continue rising towards its diagonal resistance around $42,000 before the halving. According to the trader, he expects BTC to rebound after reaching diagonal resistance before turning into support after the halving.
The halving, scheduled for April 2024, is traditionally seen as a bullish event as it will halve miners’ rewards.
Say Rekt Capital,
“Bitcoin may reject black trendline resistance before the halving (orange circle). But it will likely retest it as support after the halving (black circle).
Bitcoin is trading at $34,620 at the time of writing.
Finally, the trader weighs in on Dogecoin (DOGE). He say he is keeping a close eye on whether the memecoin can be convincing break out of a descending channel on the weekly chart.
“Very important [whether] this week’s buy-the-dip behavior is enough to push DOGE above the channel top. Since previous weekly closes below the channel top, followed by short rebounds, still preceded the bottom (orange)…
That buy-the-dip behavior we saw yesterday looks like relief under significant resistance. However, there has not been a strong DOGE rejection and downward continuation. The most important signal is a weekly close above the channel top to confirm a breakout.”
Looking at the trader’s chart, it appears he is looking for DOGE to break the top of the channel’s resistance, around $0.07.
DOGE is trading at $0.0681 at the time of writing.
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Generated image: DALLE3