Experienced Analyst Warns of Possible Solana (SOL) Decline
Experienced cryptocurrency analyst Rekt Capital has raised concerns about the potential sharp decline of Solana (SOL), a major competitor to Ethereum (ETH), and has issued a warning to investors. The analyst has also shared insights regarding the expectations for Bitcoin (BTC).
Warning about Solana: “History Repeats Itself”
Anonymous cryptocurrency analyst Rekt Capital, using his personal X (formerly known as Twitter) account, highlighted the significance of Solana’s current price situation. He warned that if Solana fails to turn a key level into support, it might follow a previous price pattern leading to a downward trend. Rekt Capital stated:
If history repeats itself, SOL could make a downward move reaching $30 (below the purple box) if it retraces above $42.86 (above the red). I don’t know if history will repeat itself, but I would personally be prepared for it.
Additionally, the analyst emphasized that the longer SOL trades below the $42 level, the higher the probability of the expected decline. He noted, “Solana is currently producing some upward wicks above approximately $42.86, indicating a retracement. If it continues to stay below this resistance, SOL may experience a deeper retracement over time.”
Looking at Rekt Capital’s shared chart, it is evident that Solana might face a significant decline similar to the price movement observed at the beginning of 2021 if it fails to surpass the $42 level. As of the time of writing, Solana is trading at $41.53, reflecting a 5.21% increase in the last 24 hours.
Bitcoin’s Prospects: Aiming for $42,000 Before Block Reward Halving
Rekt Capital also provided insights into Bitcoin’s potential trajectory. He expects the largest cryptocurrency, Bitcoin (BTC), to rise towards the declining resistance trend line at around $42,000 before the upcoming block reward halving. According to the analyst, BTC is likely to retest this trend line (black) after the halving:
Bitcoin may break the black trend line resistance before the halving (orange circle). It will probably retest it as support after the halving (black circle).
The next halving event, anticipated in April 2024, will lead to a 50% reduction in the block reward amount in BTC received by Bitcoin miners.