A popular crypto strategist says that rallies are on the horizon for two Ethereum (ETH) challengers, including Solana (SOL).
Pseudonymous crypto analyst Pentoshi tells his 556,200 Twitter followers that he believes Solana is poised for a rally as traders get overly bearish on the smart contract platform while it hovers at a key support level.
“I bought some SOL. Fished for some replies yesterday and general consensus now (compared to this original post is that people will buy at $3-$5). I think green line [playing] out is high probability. Euphoria at the highs to fear at the lows.”
At time of writing, Solana is changing hands for $42.07, up 1.70% in the last 24 hours.
The next coin on the trader’s list is fellow smart contract platform Avalanche (AVAX). According to Pentoshi, AVAX’s ability to stay above its support area at $25 increases the likelihood of a rally to his target of $40.
“IF close today inside range low, then I will be in new longs and buying. Offers clearly defined boundaries/invalidation for a trade to be taken for my trade style at high timeframe one-day, three-day and one-week support.”
At time of writing, AVAX is trading at $24,02, up over 5% in the past day.
As for the broader digital asset markets, Pentoshi says there’s a very good chance that crypto bounces soon as sentiment swings from extreme bearishness to extreme bullishness.
“It feels like everyone will go from saying it’s over, dead, zero to calling for alt season beginning and celebrating on the timeline, just to find out it’s mean reversion off high timeframe pivots. Would put this over 50% chance of happening soon.”
The crypto strategist also warns traders that over 90% of altcoins existing today will never revisit their all-time highs.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/tykcartoon/Tun_Thanakorn