Trader Lays Out Bearish Scenario for Solana if History Repeats, Updates Outlook on Bitcoin and Dogecoin
A broadly 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 degree into assist, it might observe a previous value sample to the draw back.
“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 dealer warns that the longer SOL trades under the $42 vary, the better the likelihood 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.”
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 probably proceed to rally towards its diagonal resistance at round $42,000 earlier than the halving. In accordance with the dealer, he expects BTC to retrace after hitting the diagonal resistance earlier than turning it into assist after the halving.
The halving, which is scheduled to happen in April 2024, is historically seen as a bullish occasion because it slashes miners’ rewards in half.
Says Rekt Capital,
“Bitcoin may reject from the black trendline resistance prior to the halving (orange circle). But it will likely retest it as support 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 necessary [whether] this week’s ‘buy-the-dip’ habits is sufficient to get DOGE above the channel high. As a result of earlier weekly closes under the channel high adopted by temporary rebounds nonetheless preceded draw back (orange)…
That ‘buy-the-dip’ habits we noticed yesterday is wanting like reduction underneath key resistance. Nevertheless, there was no robust DOGE rejection and draw back continuation. An important sign is a weekly shut above the channel high to substantiate 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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