Popular altcoin analysts do not seem very hopeful for the various altcoins traded on Binance. Cantering Clark shared his bearish expectation for Solana, which has emerged as an Ethereum competitor. Benjamin Cowen, on the other hand, pointed out the possibility of a bottom in Cardano. Here are the details…
Cantering Clark talks about the controversial altcoin project of recent times
A widely followed crypto trader pointed to Ethereum (ETH) rival Solana. He says Solana is close to bottoming out after losing about 95 percent of its value in 2022. Cantering Clark notes that the market sentiment on Solana (SOL) is too bearish. So much so that it is, in fact, likely to be a signal for a local bottom. The analyst used the following statements:
The market actually looks like it can get a little crowded here. I think my comment about asking for another 50 percent drop with everyone else waiting for $3 could be a sign that this thing is totally one-sided and potentially bottoming out in the near future.
Last week, Cantering Clark predicted a big drop for SOL. He said its Ethereum rival could drop between $5 and $3. Now the trader believes Solana’s cards have an open position followed by a short squeeze. cryptocoin.com As we have also reported, short squeeze indicates the closing of open positions on an asset. In short selling, traders act in the hope of selling at a lower price to pocket the difference. However, short squeeze happens when they are forced to buy back assets as the asset rises.
SOL is “short selling” traders
Data from CoinGlass shows that short selling has accounted for more than 51% of SOL positions in the last 12 hours. This shows that traders are betting that the altcoin will fall. At the time of writing, Solana is changing hands on a fractional day basis at $9.80. As for what 2023 might bring for the crypto markets, Cantering Clark predicts that crypto assets will likely be traded in a wide range, with no new record highs. The analyst uses the following statements:
Here is my 2023 prediction. Wide ranges available across all asset classes, it won’t be an all-time high. Gold continues to outperform.
Benjamin Cowen expects ‘meltdown’ for altcoins
On the other hand, analyst Benjamin Cowen predicts a meltdown for altcoins. Because an important metric shows that they have more to drop. The analyst says an altcoin “showdown” is on the horizon as the Bitcoin (BTC) dominance chart (BTC.D) still remains low. The BTC Domination chart tracks how much of the total crypto market cap is owned by Bitcoin. According to Cowen, the altcoin market remains a “falling knife” until BTC.D reaches the upside solution. The analyst used the following statements:
One of the things that really holds me down in the altcoin market is, of course, Bitcoin dominance. [This] is still very low and currently at 42%, something like 48% if you exclude stablecoins… While dominance is still low, that’s what kept me from buying altcoins this year. This is what kept me from saying ‘Look guys, I know you love shiny altcoins in bull market but they’re not your friend in bear market’ in 2022.
The dominance of altcoins in the crypto markets shows that traders are still speculating on assets other than Bitcoin. Using the smart contract platform Cardano (ADA) as a leading example of an altcoin that could fall, Cowen points to the crypto asset’s massive price drop over the past year. The analyst pointed out that ADA is down 99 percent from its all-time high. He showed the gravity of the situation, stating that if ADA falls by 98.77 percent again, it will regress to $0.04.