Trader Lays Out Bearish Scenario for Solana if History Repeats, Updates Outlook on Bitcoin and Dogecoin
A extensively adopted crypto analyst is warning that Ethereum (ETH) competitor Solana (SOL) might bear 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 stage into help, it might comply with a previous value sample to the draw back.
“SOL: if historical past repeats, Solana could expertise some excessive volatility each to the upside past $42.86 (pink) and if the rejection is powerful, even draw back volatility to as little as $30 (beneath purple field). Will historical past repeat? If it does, I’d be prepared.”
The dealer warns that the longer SOL trades beneath the $42 vary, the higher the chance of a deep correction.
“Solana already producing some upside wicks past ~$42.86. Proceed to remain beneath this resistance and SOL might see a deeper pullback over time.”
Trying on the dealer’s chart, he appears to seek advice from SOL’s value motion in early 2021 when Solana witnessed a deep pullback after failing to take out its resistance at round $42
Solana is buying and selling for $39.56 at time of writing.
Subsequent up, the dealer says that Bitcoin (BTC) will possible proceed to rally towards its diagonal resistance at round $42,000 earlier than the halving. In keeping with the dealer, he expects BTC to retrace after hitting the diagonal resistance earlier than turning it into help after the halving.
The halving, which is scheduled to happen in April 2024, is historically considered as a bullish occasion because it slashes miners’ rewards in half.
Says Rekt Capital,
“Bitcoin could reject from the black trendline resistance previous to the halving (orange circle). However it’ll possible retest it as help after the halving (black circle).”
Bitcoin is buying and selling for $34,620 at time of writing.
Lastly, the dealer weighs in on Dogecoin (DOGE). He says he’s intently watching whether or not the memecoin can convincingly break out of a descending channel on the weekly chart.
“Actually vital [whether] this week’s ‘buy-the-dip’ habits is sufficient to get DOGE above the channel prime. As a result of earlier weekly closes beneath the channel prime adopted by transient rebounds nonetheless preceded draw back (orange)…
That ‘buy-the-dip’ habits we noticed yesterday is wanting like reduction below key resistance. Nonetheless, there was no robust DOGE rejection and draw back continuation. A very powerful sign is a weekly shut above the channel prime to verify a breakout.”
Trying on the dealer’s chart, he seems to be taking a look at DOGE to breach the highest of the channel’s resistance at round $0.07.
DOGE is buying and selling for $0.0681 at time of writing.
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