In a recent Matrixport analyst Markus Thielen article, ominous predictions have been made for two major cryptocurrencies, Solana (SOL) and Ethereum (ETH). Thielen’s analysis suggests a turbulent ride ahead for these digital assets, causing significant concern among crypto investors.
Solana’s Downward Spiral
Solana, which had initially shown promise at the beginning of the year, has experienced a dramatic reversal of fortunes. Thielen notes that the recent woes of the crypto exchange FTX have played a crucial role in SOL’s decline. With FTX creditors set to sell $685 million in SOL holdings, a substantial overhang of Altcoins is expected throughout the remainder of the year. This impending supply flood has already taken its toll, as SOL saw a 6% drop last week.
The situation has become increasingly dire, with the SOL funding rate plummeting to -14% annually. The breaking of the $19 support level with rising trading volume raises concerns, and Thielen suggests that SOL could target even lower price points at $15 and $10 in the near future.
Ethereum, often hailed as “ultrasound money,” is also facing its own set of challenges. Thielen points to the disheartening fact that Ethereum’s issuance of 15,000 Ether exceeds the 11,000 Ether burned last week, casting doubts on its fundamentals.
With Ethereum teetering near the psychologically significant $1,600 threshold, a further decline could send prices plummeting. Thielen speculates that a dip below $1,500 could bring ETH closer to the $1,000 mark, a level justified by revenue projections from the Ethereum ecosystem.
The technical analysis is equally grim, as Ethereum recently broke through the $1,650 support, prompting extreme caution. This downward momentum could persist, spelling trouble for the world’s second-largest cryptocurrency.
Bitcoin and Ethereum are experiencing bearish trends, with prices below their 50-day moving averages. BTC is trading at $25,836, while ETH struggles at $1,617. Declining weekly volumes further contribute to the ominous atmosphere in the crypto market.
Nevertheless, the crypto world appears to be on shaky ground, as Solana and Ethereum face significant challenges. Thielen’s analysis is a stark warning to investors, urging caution in these uncertain times.
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