Solana Faces 58% Drop Risk as Analyst Predicts Bearish Trend

A pseudonymous crypto analyst, known as Capo, has forecasted a significant depreciation for Solana (SOL), an Ethereum rival. According to Capo, Solana is currently testing a resistance level that was previously a support zone, and he predicts that it could fall by up to 58% from its current level if it fails to break above a level last reached late last month. Capo's analysis suggests that after the current "dead-cat bounce," Solana is testing another important resistance level, with a main target range of $60 to $80.

Capo's bearish outlook on Solana comes as the cryptocurrency is trading at $143, marking a decline of around 51% from its all-time high reached in January. This prediction is based on technical indicators and market trends, which Capo believes point to an imminent correction for Solana.

In addition to his analysis of Solana, Capo has also updated his outlook on Bitcoin (BTC). He notes that Bitcoin is facing strong resistance at a level just below $109,000. According to Capo's chart of the one-day time frame, Bitcoin could first fall to a support level around $93,000. Furthermore, Capo suggests that Bitcoin could capitulate even further and revisit the zone between $60,000 and $70,000, levels last witnessed in October of 2024. This cautious outlook on Bitcoin is a reminder for investors to be prepared for potential fluctuations and to consider diversifying their portfolios to mitigate risks.

Capo's warnings come at a time when the cryptocurrency market is experiencing heightened uncertainty. Market participants are closely monitoring various factors that can impact the performance of digital assets. Capo's insights provide a valuable perspective for investors navigating this complex landscape, underscoring the importance of staying informed and adaptable in the ever-changing world of cryptocurrencies. By closely monitoring market trends and technical indicators, investors can make more informed decisions and better manage their portfolios. Capo's cautionary outlook serves as a reminder that while the cryptocurrency market offers significant opportunities, it also comes with inherent risks that must be carefully managed.