- Analyst Credible warns of a potential downturn for Solana (SOL), suggesting the token is in a “distribution phase.”
- Despite near-term bullishness driven by Bitcoin’s strength, Credible predicts a significant SOL price correction.
One prominent social media analyst, known as Credible, has sent shockwaves through the crypto community with his stark warning about Solana (SOL). With a track record of contrarian predictions, Credible’s recent assessment suggests that SOL may be heading towards a meltdown after a potential final rally.
Credible, who commands a substantial following of 395,200 on platform X, characterized SOL’s current market behavior as a “distribution phase.” This phase typically occurs when large investors begin selling their holdings to capitalize on profits, potentially signaling an impending downturn in price without causing a crash.
While Credible acknowledges the temporary boost SOL may receive from Bitcoin’s current strength and market structure, he remains cautious about the token’s long-term prospects. “If we can maintain the current momentum in the green zone,” Credible stated, “there’s a chance SOL could see another price spike before the anticipated meltdown.”
According to trading charts, SOL was valued at $169.84 at the time of writing, but Credible suggests the price could plummet to below $100 as part of the predicted correction. Bitcoin, which is closely correlated with the broader crypto market, is also expected to experience volatility, potentially dipping to $67,800 before rebounding to $72,000, according to Credible’s analysis.
“Longs on BTC are showing promising signs,” Credible noted, indicating short-term optimism for Bitcoin’s performance. However, he cautioned that the broader implications for altcoins like SOL could be more severe due to their larger distribution networks and increased susceptibility to market corrections.
Credible’s warnings come at a time when many investors are navigating the unpredictable waters of the crypto market, with both excitement and caution. Solana has been a standout performer in recent months, reaching highs of $230, largely driven by the strength of Bitcoin. However, as Bitcoin’s influence wanes or market sentiment shifts, tokens like SOL could face significant selling pressure.
As always, cryptocurrency investments carry inherent risks, and analysts like Credible provide valuable insights into potential market movements. With SOL’s future uncertain, investors are advised to exercise caution and stay informed about developments that could impact its price trajectory.
In conclusion, while SOL continues to benefit from Bitcoin’s bullish momentum, Credible’s analysis suggests that a period of correction may be imminent. Investors should keep a close watch on market trends and consider diversifying their portfolios to mitigate potential risks associated with volatile market conditions.