An analyst who accurately called the 2022 crypto collapse believes digital assets are about to enter a period of sustained rallies.
Pseudonymous analyst Capo tells his 909,000 followers on social media platform X that he sees the resurgence of bullish momentum in crypto.
However, the analyst notes that his prediction will only become reality after a significant correction.
“Potential final shakeout of 5%-15% before the up only season begins.
Just don’t let it discourage you.”
Kapo too tells his 114,604 subscribers to his Telegram channel indicate that he is building a hedge position in line with his expected correction. Hedging is a risk management strategy in which traders open new positions designed to offset the potential losses of their existing investments.
Looking at Solana (SOL), the analyst shares a chart that suggests the large-cap crypto asset would fall to the $220 price level before rallying to a new all-time high of $320.
At the time of writing, SOL is trading at $250.
As for Ethereum (ETH), the trader sees the leading altcoin returning to its “key support area” before surging to a new all-time high near $5,000.
“This is what it would look like. Same as before, but with the possible final shakeout, which would test the $2,800-$3,000 support again.”
Based on the trader’s chart, he seems to predict that the altseason will begin once Ethereum fuels its run to a new all-time high. At the time of writing, ETH is worth $3,329.
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Generated image: Midjourney