A widely followed crypto strategist is warning traders that one major Ethereum (ETH) rival is about to plummet.
Pseudonymous analyst Altcoin Sherpa tells his 195,700 Twitter followers that Solana (SOL) could see a more than 30% decline from its current value.
According to Sherpa, Solana’s volume profile shows a risk of a major collapse. Looking at his chart, the next high volume price level on the downside is around the $14 to $15 range, which it last traded for in January 2023.
“SOL: EMAs (exponential moving averages) all doing ok on the 1-day but this is at a scary spot. If this area falls, price is probably headed to the $14-$15 area. Still not really a fan of this chart as of now. (I do think that SOL will be fine long term and should be a decent bet given the community).”
Solana is trading for $20.70 at time of writing, up 0.1% during the past 24 hours.
Next Sherpa, predicts that Bitcoin (BTC) is on the verge of a dip down to at least the $25,000 level, or even lower to the $23,000 level.
“BTC Update: I still think $25,000 has too much confluence to not get tapped. I’m still waiting for the next low to form as well. Past lows have shown a shakeout to start it, let’s see if we make it to $23,000 or so.”
In a new strategy session video, Sherpa expands on his thesis, noting several indicators are pointing to a $25,000 BTC level, including the 200-week EMA, the support and resistance level (SR) and the .382 Fibonacci level.
“This $25,000 level would make a lot of sense to me personally. And the reason is that it’s the 200-week EMA, S/R (support/resistance) level here and as we scale down to the daily it’s also the 200-day EMA as well. And it’s also the .382 [Fibonacci]…
There’s just a lot of confluence here with $25,000.”
He predicts that the momentum of breaking support levels will likely cause Bitcoin to dip lower than $25,000, down to $23,000 before reclaiming the $25,000 level as support.
Bitcoin is trading for $26,823 at time of writing, down 0.8% during the last 24 hours.
Generated Image: Midjourney
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