A closely followed crypto analyst says one Ethereum (ETH) competitor could be gearing up for a massive surge after losing 95% of its value last year.
Pseudonymous analyst DonAlt says in a new strategy session that Ethereum rival Solana (SOL) could ignite a major rally as traders heavily bet on the altcoin’s sustained downfall.
“People have been degen shorting [SOL]. I actually like it a lot at $4.20… But I honestly think there’s a chance we don’t get there. And this is a structure that I like to buy as in the current weekly look is one where the market completely disappears, and you get a little bit of buying and another secondary capitulation event. I usually like to buy these.
I could see a move from $10 to $16 happen anytime soon, which is a massive trade.”
At time of writing, Solana is changing hands for $11.12, up over 12% in the last 24 hours. A move to DonAlt’s target suggests an upside potential of over 43% for the smart contract protocol.
Looking at Ethereum itself, the crypto analyst says ETH is flashing relative strength but wants to see the leading altcoin take out a key resistance level to turn bullish.
“Let’s say ETH goes up from here, and $1,300 is the nearest resistance, and it starts looking like it’s breaking the trend.”
DonAlt also says that Ethereum had a lot of bullish development in 2022.
“You still have one the biggest narratives that we’ve had in crypto, basically ETH going deflationary. We still haven’t had that play out at all. I think it’s in the backburner because the entire market is doing poorly. But I wouldn’t want to fade all of that. If it crashes to $800, then it crashes to $800, and I’ll buy it. If it crosses $700, I’ll buy it. Or if it shows some strength through $1,300, I’d be more than willing to put on a bigger position as well because I think there’s a lot in the corner for ETH.
It’s just that the entire market’s been dragging it down.”
At time of writing, ETH is valued at $1,213, a 1.53% increase in the past 24 hours.
I
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/jovan vitanovski/Spyro the Dragon