A popular crypto analyst is predicting market corrections for Solana (SOL) and another one of Ethereum’s (ETH) biggest competitors.
Pseudonymous trader Altcoin Sherpa tells his 201,800 followers on the social media platform X that Solana is setting up to dip below $50, more than 31% below its current value.
Although the trader says that a correction is in sight for Solana, he thinks that SOL will eventually recover and regain its bullish momentum.
“SOL: for traders, I think sub $50 is coming for Solana in the mid-term.
For investors, SOL is going to go to much higher levels in the coming months, so probably just don’t worry about it. I’m going to just hold my SOL and chill.”
Using Fibonacci retracement levels, the trader suggests Solana may retest $48.71 before a bounce.
Solana is trading for $73.37 at time of writing, up 2.6% in the last 24 hours.
Next up, the trader predicts that ETH rival Avalanche (AVAX) will undergo a correction and revisit levels below $30 following its recent massive rally.
“AVAX: things are looking kind of toppy in the short term. Still bullish on this in the longer term for 2024 but wouldn’t be surprised if this cools to sub $30.”
Looking at the trader’s chart, he appears to suggest that AVAX is about to lose key support around the $39 level.
AVAX is trading for $39.88 at time of writing, up 1.3% in the last 24 hours.
Lastly, the trader believes that Dogecoin (DOGE) rival Bonk (BONK) is entering a distribution phase or a period where early investors take the time to unload their holdings to sell their coins at a relatively high price.
“BONK: not shorting this quite yet, wouldn’t dismiss having some sort of scam pump on this one. That’ll be the one to consider shorting, to be honest. I think that this is in its distribution phase for now though. Expecting the other memes like MYRO to die soon (for a while).”
Bonk is trading for $0.00001918 at time of writing, down 0.8% in the last 24 hours.
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