A Warning for Solana: Potential Market Correction
A well-known crypto analyst is cautioning that Solana (SOL), a competitor to Ethereum (ETH), may face a sudden market correction. The analyst, Rekt Capital, shares his concerns with his followers on the social media platform X. He believes that if SOL fails to turn a crucial level into support, it could follow a previous price pattern and experience downward volatility.
Rekt Capital emphasizes that the longer SOL remains below the $42 range, the higher the chances of a significant correction. Looking at SOL’s chart, he refers to its price action in early 2021 when it encountered a deep pullback after failing to break through resistance at around $42. Currently, SOL is trading at $39.56.
Bitcoin’s Rally and Halving Projection
The analyst also offers insights on Bitcoin (BTC). He predicts that BTC will likely continue its rally towards the diagonal resistance at approximately $42,000 before the halving event. Rekt Capital expects BTC to retrace after reaching this resistance but then transform it into support following the halving. The halving, scheduled for April 2024, is typically considered a bullish event as it halves miners’ rewards.
At present, Bitcoin is trading at $34,620.
Assessing Dogecoin’s Breakout Potential
Rekt Capital also weighs in on Dogecoin (DOGE). He closely watches whether the memecoin can convincingly break out of a descending channel on its weekly chart. The analyst highlights the significance of DOGE surpassing the channel’s top and closing above it to confirm a breakout.
The trader’s chart indicates that he is looking for DOGE to breach the channel’s resistance around $0.07. Currently, DOGE is trading at $0.0681.
Hot Take: A Look at Crypto’s Potential Scenarios
As crypto markets continue to experience volatility, it’s crucial for investors to stay informed about potential scenarios and market movements. Rekt Capital’s analysis provides valuable insights into the possible outcomes for Solana, Bitcoin, and Dogecoin. By examining historical patterns and key levels, traders can make more informed decisions about their investments in these cryptocurrencies.
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