Renowned crypto trader and analyst Altcoin Sherpa have issued a warning to traders about the potential downfall of Solana (SOL), a major rival of Ethereum (ETH). With a Twitter following of 195,700, Sherpa predicts that Solana could experience a significant decline of over 30% from its current value.
Analyst Warns of Major Plummet for SOL
Sherpa highlights the risk of a major collapse for Solana based on its volume profile. Analyzing the chart, he identifies the next high volume price level on the downside to being around the $14 to $15 range, which the cryptocurrency last traded for in January 2023.
$SOL: EMAs all doing ok on the 1D 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.
— Altcoin Sherpa (@AltcoinSherpa) June 1, 2023
Expressing concern over Solana’s chart, Sherpa states, “If this area falls, price is probably headed to the $14-$15 area. Still not really a fan of this chart as of now.”
However, he believes that Solana will fare well in the long term and remains a decent investment option due to its strong community support.
BTC’s Potential Lower Dip: Sherpa Expects $23,000 Bitcoin Level
In addition to the warning about Solana, Altcoin Sherpa also provides insights into Bitcoin’s future trajectory. He predicts that Bitcoin (BTC) is on the verge of experiencing a dip, potentially reaching at least the $25,000 level or possibly dropping even lower to $23,000.
According to Sherpa, various indicators point towards a $25,000 BTC level, including the 200-week exponential moving average (EMA), support and resistance levels (SR), and the .382 Fibonacci level. Sherpa suggests that this level holds significant confluence, making it a logical target.
Sherpa believes that the momentum of breaking support levels will likely drive Bitcoin’s price lower than $25,000, possibly down to $23,000, before the cryptocurrency reclaims the $25,000 level as a support level.
As of now, Bitcoin is trading at $26,823, reflecting a decrease of 0.8% in the past 24 hours. Altcoin Sherpa’s predictions and analysis serve as a cautionary note for crypto traders, urging them to closely monitor the potential decline of Solana and the expected dip in Bitcoin’s price.