A closely followed crypto strategist is issuing a warning to Solana (SOL) holders, saying that the top Ethereum (ETH) challenger could spiral out of control.
In a new strategy session, pseudonymous analyst Altcoin Psycho says that Solana could be on the verge of a big breakdown as the ninth-largest crypto asset by market cap struggles to stay above a high timeframe support level.
“I really like this one. I really, really like the way Solana looks, and what I mean by that is I think it looks like sh*t. I think it’s going to go lower and that really excites me. I don’t have any short-term accumulation plans on Solana. I’m patiently waiting to see if this level ($25) breaks. I think everyone’s pretty much watching the same level.
Will it break? I don’t know, but if there’s something that is a good candidate crumbling out of control a little, I think it is Solana.”
On top of SOL’s weak price action, Altcoin Psycho also says that new market participants who invested in Solana while the smart contract platform was rallying last year are now nursing heavy losses.
According to the analyst, those investors could sell their holdings at a loss in favor of new crypto assets touted as “Solana killers.”
“I personally think that Aptos (APT) and Sui (SUI) will be the shiny new toys for a little bit, specifically because they are marketed as the ‘Solana killers.’ I think they could take away some liquidity from Solana, especially towards all those inexperienced retail holders that got in at the top [of Solana]…
There’s a lot of people still underwater in Solana, and I think that your less experienced traders right now, especially if this is their first time dealing with the bear market, they’re probably freaking out that Solana is looking the way it does… So you combine that with the fact that everyone on Twitter is just talking about Aptos and talking about Sui, talking about these Solana killers…
I think if there’s one token, one big token, one of the big majors that’s a prime candidate to break a major level of support, I would say it’s Solana.”
At time of writing, Solana is changing hands for $28.99, up nearly 4% on the day.