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Crypto Analyst Projects Downside for Solana, Updates Bitcoin

According to Justin Bennett, a prominent crypto analyst gives warning on Ethereum (ETH) rival Solana (SOL) to investors and traders.

Solana (SOL)

Bennett shared with his 101.9K followers on Twitter that Solana has broken down from its diagonal support after an upside fakeout and looks to be headed to lower levels. 

“Markets got choppy over the weekend as expected, but so far so good with this SOL fakeout from last week.

Beautiful lower high to short on that retest. And now trading below this channel.

$33.80 and $31 are next, in my opinion.”

At time of writing, SOL trades at $34.91, up 5.4% on the daily chart.

Bitcoin (BTC)

Looking into Bitcoin (BTC), Bennett sees BTC’s near-term price action still being largely influenced by the S&P 500. The S&P 500 looks bearish after failing to move above a key level, the analyst notes.

“The S&P 500 failed to close above 3,900 last week. Get below this short-term trend line (3,750), and 3,640 is likely next, followed by the 3,400 pre-Covid high. 3,400 is only a matter of time, in my opinion.”

According to Bennett, a move to 3,400 for the S&P 500 puts BTC at risk of another significant correction.

“3,400 is about 12% below current levels.

The last time the S&P 500 dropped 12%, BTC lost 33%.

That doesn’t mean it will repeat exactly, but a 20%-30% drop from Bitcoin is reasonable if the S&P 500 tests 3,400.”

At time of writing, BTC trades at $20,223, up 3.66% on the daily range.

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