A closely followed trader says that he’s investing in one Solana-based (SOL) move-to-earn project with the expectation that the token will spark a series of massive rallies.
The pseudonymous crypto trader known as Capo tells his 551,000 Twitter followers that he thinks the crypto markets will pick a direction early next month once the Federal Reserve confirms another interest rate hike.
According to Capo, Bitcoin (BTC) will lead a crypto market correction after the Fed announces either a 75 or 100 basis points rise in rates.
“BTC potential roadmap.”
Capo says that BTC is currently above the $19,000 mark because yesterday’s dip lower was more of a deviation than a direct price impulse downward. He says a rally to $21,000 or more is still likely before a dramatic correction to the $14,000 level.
“Right now price is back above $19,000 so the move below this level is considered as a deviation (bullish).
Demand coming in confirms this. There’s fuel to keep going up.
Short squeeze is not over and $21,000 is very likely. Then I will turn full bearish again and wait for new lows.”
While $21,000 is the trader’s base case, he’s still staying prepared for a potential break through of that resistance level to other targets in the mid $20,000s.
“From what I see now, $21,000 should act as resistance. It could go to $21,100, $21,200… as long as it doesn’t break that level on a HTF [higher time frame] close.
Example on chart.”
Looking at the altcoin market, Capo says he just grabbed a bag of STEPN (GMT), the popular move-to-earn project built on the Solana blockchain.
According to the trader, GMT is gearing up for a hefty 42% rally from its current price of $0.58 up to the $0.84 range.
Based on Capo’s chart, he also foresees a subsequent 60% dip from the $0.84 level all the way down to $0.33 before igniting a powerful 248% bull run to the $1.15 area.
“Just bought a bag of GMT.”