A closely followed crypto analyst says that smart contract platform Solana (SOL) is setting up a bull trap for investors.
In a new strategy session, pseudonymous crypto analyst Crypto Capo tells his audience on the social media platform Telegram that the Ethereum (ETH) rival looks like it’s ready to fake traders out.
“This also looks like a bull trap, in my opinion. Basically the same pattern they’ve been pulling these past few days. Stay safe.”
The trader’s chart appears to indicate that Solana will drop all the way back down to $140 sometime in March before subsequently sparking a massive rally that takes it to a new all-time high.
According to the trader, many altcoins could follow a similar pattern, as he predicts they could drop another 20-40% before quickly recovering.
“Yes, I mentioned the other day’s drop might have been the last shakeout, but adapting to current circumstances is key. From current levels, altcoins could drop another 20-40% in this second shakeout, potentially followed by a quick recovery.
I call it a ‘shakeout’ because panic-selling during these sudden moves is a mistake. The right move is to stay calm and add to your position, since this should be in the accumulation zone.”
Capo also predicts the top two crypto assets by market cap, Bitcoin (BTC) and Ethereum (ETH), will also follow suit.
His charts indicate that BTC will dip to around $86,000 sometime in February before taking off to a new record price while ETH will drop to around $1,800-$2,100 before sparking a rally in March to pass the $4,800 price tag.
SOL is trading for $190.92 at time of writing, a marginal decrease during the last 24 hours while BTC and ETH are valued at $95,797 and $2,644 respectively.
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