Crypto analyst Jason Pizzino thinks traders should be wary of Ethereum (ETH) rival Solana (SOL) as it shows a technical pattern reminiscent of the top of the last cycle.
In a new YouTube video, Pizzino tells his 300,000 subscribers that Solana is currently printing a similar pattern to what it showed when it peaked at around $260 in 2021.
The analyst noted that in late November, when SOL was trading between $55 and $60, he predicted that the SOL rally was likely to come to an end. He noted that SOL’s price rose from there, then retreated, then made another attempt higher before retreating again.
“That doesn’t mean this is the end, but it’s eerily similar to what happened here at the summit, only on a shorter term. You can see a huge run up to about $220, the pullback, and then the market tried to go higher, failed, got below, got rejected, and then of course the macro bear market started from there.”
Pizzino notes that Solana’s current resistance level is hovering around $75-$76, and he warns that SOL’s top “isn’t even confirmed yet.” However, the analyst says SOL’s potential upside appears “fairly limited” at this point compared to the asset’s potential downside crashes.
SOL is trading at $71.49 at the time of writing.
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Generated image: Midjourney