A closely-followed crypto analyst is warning Solana (SOL) holders that the smart contract platform’s bearish trend is far from over. She also states that she watches Gala (GALA) closely. Another analyst, Nicholas Merten, says that Ethereum (ETH) remains overvalued and expects a sharp price drop. Here are the details…
Analyst watches GALA and Solana
Analyst Cheds told 50,200 YouTube subscribers that Ethereum (ETH) rival Solana is trending bearish and plans to short sell if SOL jumps to $15. If a bounce doesn’t occur, Cheds says it expects SOL to correct more than 75 percent from its current $12.45 price. Cheds used the following statements:
We’re basically breaking support. I think the next support is around 3-4 dollars… There is a long way to go. It may not go straight [down]… But this is not a painting you have to look at for long. It looks like you want to avoid that for now.
The crypto strategist is also closely watching the player-controlled blockchain platform Gala (GALA). According to Cheds, GALA is witnessing a serious downtrend. He says there may not be a new high in the next bull run for GALA. However, he states that it will go up to $ 0.05. As a result, he uses the phrases for GALA, “it’s not a coin you should hold”. He states that GALA has “a graph that gradually goes to zero.”
Thoughts for Bitcoin: $12,000 support
Cheds has also locked its radar on Bitcoin (BTC), which it says is approaching its bear market target. According to Cheds, the $12,000 price area should act as a strong support, given that BTC bulls have managed to conquer this level after years of struggle. The analyst used the following statements:
The scenario I’ve been talking about for six or seven months now, which is crazy, might actually be happening… My thought was that we had a good base of support here [about $12,000]… 2018 and then mid-2019 and a year later, [Bitcoin] was rejected and rose above this base. This should be really supportive.
Nicholas Merten: ETH value drops
In a new video update, Merten says that the current value of smart contract platform Ethereum is declining, according to analysis of his weekly chart. “As we have emphasized many times before, we think Ethereum is overvalued at these levels,” he says. He reports that ETH is up at a fundamental level, but is overvalued compared to bear markets.
Looking at its chart, Merten seems to predict that Ethereum will drop to around $300 early next year. At the time of writing, Ethereum is trading at $1,135. Merten also looks at the US Dollar Index (DXY), a measure of the strength of the US dollar against other currencies. A strengthening DXY means a weakening crypto market. Merten predicts DXY will rise to the 110 to 114 range. At the time of writing, DXY is in the 107 range. Merten used the following statements:
I’m not talking about long positions, but at least from September to early November it retests a backup for this similar type of consolidation range, usually between 110 and 114. I’ll look for some potential long positions on that.
