A trader who continues to build a large following with his timely altcoin calls says that one of Ethereum’s biggest competitors may be following ETH‘s early stages of growth.
Pseudonymous trader Cantering Clark shares a chart with his 159,000 Twitter followers showing uncanny similarities between the price action of Solana (SOL) today and Ethereum’s in 2018.
“Early ETH vs SOL.”
The trader’s chart shows both assets bouncing off a support level mutiple times, then collapsing through it before making a lower low and then a rebound.
From its 2018 low, Ethereum ultimately rallied 5,777% to its all-time high, from $83 to $4,878. With Solana’s recent low of $8, a similar move for SOL would suggest a rally to roughly to $462 before the next bear market.
Looking at the rest of crypto markets, Cantering Clark says that the “January effect,” referring to cypto’s tendency to rally at the beginning of the year, is likely over. He predicts a correction in the near term, potentially triggered by poor earnings reports or other macroeconomic announcements.
“The January effect is done. Historically big months like this follow with some mean reversion, and what better way to start the next month with a gamut of events: FOMC and earnings for Amazon, Apple, Google, Meta, Exxon, Pfizer, Merck…
If I had to guess.
Take it back to 20k area, and chop people up left and right before continuing.”
The trader says BTC lacks a lot of liquidity between $23,000 and about $21,000 which could mean price falls rather quickly until the next major level.
“I don’t really care to do anything aggressive while Bitcoin is at the top of the range.
Flipping 25k might change my mind.
There are some really imbalanced areas that price likes to revisit and could cut through like butter.
Eyes on anchored yearly vwap (volume weighted average price) and Jan 23rd low.”
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The post Is Solana Following Ethereum’s Early Days? Top Trader Compares SOL and ETH, Updates Stance on Crypto Markets appeared first on The Daily Hodl.
source https://dailyhodl.com/2023/01/30/is-solana-following-ethereums-early-days-top-trader-compares-sol-and-eth-updates-stance-on-crypto-markets/