Top Analyst Says ETH Challenger Decline Its 95% Value Last Year

One Ethereum (ETH) rival, according to a well-known crypto trader, is almost at the bottom after losing around 95% of its value in 2022.

Cantering Clark, a pseudonymous analyst, tweets to his 156,300 followers that the market sentiment on the innovative contract platform Solana (SOL) may be a hint of a local bottom because it is so damaging.

“Looks like the market might actually be a bit crowded here. I think that my own interpretation of calling for another 50% drop along with everyone else calling for $3 might be the signal that this thing is completely one-sided and potentially bottoming here for the near future.”

Cantering Clark foresaw a sharp decrease for SOL last week, estimating that the Ethereum competitor may fall by $5 to $3. The trader now thinks that Solana will see a short squeeze.

“Long SOL for more of a squeeze, possibly.”

When traders borrow units of an asset at one price to sell them at a lesser cost and pocket the difference, they experience a short squeeze, which forces them to repurchase assets when the trade goes against their bias.

According to data from analytics company CoinGlass, almost 51% of SOL holdings in the previous 12 hours are short, indicating that traders are banking on the cryptocurrency to decline.

Solana is trading for $9.80, a little down from the previous day.

Cantering Clark forecasts that 2023 will likely deliver a wide range of trading in digital assets without any new record highs for the market.