An anonymous cryptocurrency analyst, known as Credible, has forecasted a significant downturn for the altcoin Solana (SOL) following an impending rally. Credible shared his perspective with followers on social media platform X, suggesting that Solana is currently in a distribution phase where major investors are gradually offloading their assets to prevent market disruption.
Will Solana Rally Before Dropping?
Credible posits that due to Bitcoin’s current bullish momentum, Solana may witness one last surge, potentially reaching the $230 mark. He notes that while Bitcoin’s strength might temporarily buoy the market, Solana and other altcoins are entrenched in a larger distribution pattern. Should SOL maintain its position above the green support zone in the price chart, it might achieve a new peak prior to the anticipated decline.
At the time of the analysis, Solana was trading at $169.84. Credible’s projections also point to a potential drop below $100 after the expected rally, raising investor concerns about Solana’s short-term outlook amidst the current market situation.
What Role Does Bitcoin Play?
Credible also provided insights on Bitcoin, highlighting its strength on shorter time frames. He predicted a brief dip to around $67,800 before overcoming the resistance at $72,000. The analyst maintains a positive view on Bitcoin’s immediate performance, suggesting it could continue its upward trajectory without a significant correction.
Key Investor Takeaways
Here are some key inferences for investors:
- Monitor Solana’s price action closely for signs of the predicted rally and subsequent decline.
- Consider the potential impact of Bitcoin’s movements on altcoin performance, particularly Solana.
- Be aware of the distribution phase, indicating large investors’ strategies for market stabilization.
- Prepare for potential volatility in Solana’s price below $100.
Credible’s analysis underscores the interconnected nature of the cryptocurrency market, where Bitcoin’s trends significantly affect altcoins like Solana. The prediction of a final rally followed by a sharp decline serves as a caution for investors regarding Solana’s immediate future.