A widely followed crypto analyst is warning that Ethereum (ETH) competitor Solana (SOL) could undergo a sudden market correction.
Pseudonymous crypto analyst Rekt Capital tells his 363,800 followers on the social media platform X that if SOL fails to flip a key level into support, it could follow a prior price pattern to the downside.
“SOL: if history repeats, Solana may experience some extreme volatility both to the upside beyond $42.86 (red) and if the rejection is strong, even downside volatility to as low as $30 (below purple box). Will history repeat? If it does, I’d be ready.”
The trader warns that the longer SOL trades below the $42 range, the greater the probability of a deep correction.
“Solana already producing some upside wicks beyond ~$42.86. Continue to stay below this resistance and SOL could see a deeper pullback over time.”
Looking at the trader’s chart, he seems to refer to SOL’s price action in early 2021 when Solana witnessed a deep pullback after failing to take out its resistance at around $42
Solana is trading for $39.56 at time of writing.
Next up, the trader says that Bitcoin (BTC) will likely continue to rally toward its diagonal resistance at around $42,000 before the halving. According to the trader, he expects BTC to retrace after hitting the diagonal resistance before turning it into support after the halving.
The halving, which is scheduled to take place in April 2024, is traditionally viewed as a bullish event as it slashes miners’ rewards in half.
Says Rekt Capital,
“Bitcoin may reject from the black trendline resistance
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Author: Daily Hodl Staff
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