Top Crypto Analyst Says Ethereum Challenger May Bottom After Falling 95% Last Year

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A widely followed crypto trader says a competitor to Ethereum (ETH) is on the verge of bottoming out after losing around 95% of its value in 2022.

Pseudonymous analyst Cantering Clark tells his 156,300 Twitter followers that market sentiment on smart contract platform Solana (SOL) is so bearish it could actually be a signal for a local bottom.

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

Source: Clark at a gallop/Twitter

Last week, Cantering Clark predicted a massive drop in SOL and said Ethereum’s rival could drop between $5 and $3. Now the trader thinks a short press is in the cards for Solana.

“Long SOL for more of a press maybe.”

A short squeeze occurs when traders who borrow units of an asset at a certain price in hopes of selling them at a lower price to pocket the difference are forced to repurchase assets as the trade moves against their bias .

Data from analytics firm CoinGlass shows that shorts account for over 51% of SOL positions over the past 12 hours, suggesting traders are betting on the altcoin’s fall.

At the time of writing, Solana is changing hands for $9.80, a fractional decrease on the day.

As for what 2023 could bring to the crypto markets, Cantering Clark predicts that digital assets will likely trade in a wide range with no new highs.

“Here is my prediction for 2023. Wide ranges across all asset classes, no new all-time highs. Gold continues to outperform.

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Feature image: Shutterstock/Tithi Luadthong/Iryna_Khomenko

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