Solana’s Potential Decline Before a Rally
A well-known figure in the cryptocurrency realm, who goes by the name Inmortal, has recently shared his thoughts about Solana (SOL), a cryptocurrency that competes with Ethereum (ETH). Inmortal suggests that SOL might see a decrease in its value before it has a chance to make a significant upward movement.
Upcoming Token Unlocks
According to Inmortal, one of the main reasons for this anticipated decline is the approaching unlocking of over 11 million SOL tokens. This event raises concerns among investors because:
- Increase in Supply: When tokens are unlocked, there are more of them available for trading, which can lead to increased selling pressure.
- Market Reactions: Historically, token unlocks have been associated with negative reactions in the market, often leading to price drops.
However, it is important to note that not all token unlocks lead to a decrease in price. Sometimes, they can even precede significant rallies. Inmortal speculates that the market may have already priced in this upcoming unlock, which could soften its impact.
Inmortal’s Predictions
In his recent update, Inmortal provided his analysis on what he expects to happen in the near future:
- Bottoming Out: He believes that if the price hasn’t hit its lowest point yet, it is very close to doing so.
- Reaching Low Levels: He predicts that SOL will test support levels near $120.
- Price Adjustments: He anticipates that the market may be overreacting to the news, leading to potential price corrections.
“After we get zero reaction to unlocks, we accelerate again,” he stated, implying that once the market absorbs the unlock news, SOL could increase in value.
At the moment, Solana is priced around $168, experiencing a 4.5% drop over the last day.
Optimism for Other Cryptocurrencies
Inmortal’s optimism doesn’t just stop with Solana. He is also bullish about Bitcoin (BTC), which remains stable at a support level of $92,500 on a 12-hour chart. His confidence is evident as he dismisses any bearish sentiment surrounding Bitcoin, saying, "Imagine being bearish."
Ethereum’s Future Price Predictions
Inmortal has made a bold prediction for Ethereum, forecasting that its price could reach $4,400 by June. He has expressed his confidence, noting that when fear, uncertainty, and doubt (often referred to as FUD) don’t severely affect the price of an asset, it remains a strong indication for future growth. He believes that Ethereum could see a slow but steady increase, culminating in a significant price spike, which he affectionately calls a "god candle."
At present, Ethereum is trading at approximately $2,683, down 1.7% in the last 24 hours.
Conclusion
In summary, the upcoming unlock of SOL tokens may lead to a short-term dip in price, according to Inmortal’s analysis. However, this could pave the way for a potentially explosive rally afterward. Meanwhile, Inmortal shows confidence in the stability of Bitcoin and has an optimistic outlook for Ethereum’s growth in the coming months.
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Disclaimer
Please remember that the opinions expressed in discussions about cryptocurrencies are not to be taken as investment advice. Always conduct thorough research before making any high-risk investments in Bitcoin, cryptocurrency, or any digital assets. The responsibility for any trading decisions and potential losses lies solely with the investor.
