A crypto strategist, who goes by the pseudonym Altcoin Psycho, warns Solana (SOL) holders that Ethereum’s last big competitor may spiral out of control in the near future.
Solana Could Be On The Verge of a Breakdown
Crypto asset Solana may be headed for a huge breakdown according to Altcoin Psycho says the ninth largest crypto has struggled 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,” he said on his Youtube video.
“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,” he added.
Aside from Solana’s weak price action, Altcoin Psycho notes that new investors, who invested in the smart contract platform last year when it was rallying, now suffer heavy losses.
Warns The Investor to not Sell Their Holdings
The analyst warns that investors could lose money on their investments if they sell their holdings to take advantage of new crypto assets that are referred to 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]…,” he explained.
Some people are still underwater in Solana right now, and less experienced traders (especially those who have never dealt with a bear market before) are probably freaking out that it is looking that way, according to the analysts.
“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,” he further explained.
He stressed that “ 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 the time of writing, Solana is valued at $28.29 according to Coingecko.