A crypto analyst and trader known for accurately predicting the big 2022 market crash is putting Solana (SOL) bulls on notice.
The pseudonymous analyst known as Capo tells his 588,000 Twitter followers that crypto markets are likely forming a classic bull trap.
With the recent jump in prices, Capo says most traders are going to get caught off guard by a hefty correction.
Most people are not prepared for what is coming and it shows.
— il Capo Of Crypto (@CryptoCapo_) November 5, 2022
While many traders have flipped bullish on Solana, especially after Google Cloud’s decision to become a validator, Capo is targeting significant downside on SOL as he believes the smart contract platform will likely violate its uptrend support around $30.
“SOL.
Main target: $17-$19.”
At time of writing, SOL is changing hands for $30.90, down 11.64% on the day and almost 45% away from Capo’s downside target.
Capo is also bearish on FTX Token (FTT), which experienced a suprise 15% rally on the weekend, from the $22 range to $25.
“Today’s FTT pump is one of the biggest bull traps I’ve ever seen.
Sub $10 is programmed.”
According to Capo, FTT won’t see any meaningful demand until it reaches the $8.50 level, over 60% away from current prices.
“That time of the week.”
At time of writing, FTT is valued at $22.02, a 4.25% decrease in the past 24 hours.
Looking at Bitcoin (BTC), the popular analyst says that the leading cryptocurrency by market cap is potentially in the process of forming a top near the $21,500 level before it sees another big dip.
“Starting to get bearish signs on BTC
Potential local top to be formed this weekend at current levels ($21,400-$21,500)
Stay safe.”
At time of writing, Bitcoin is trading at $20,623, down 1.81% on the day.
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Featured Image: Shutterstock/Malyutin Nikita/Natalia Siiatovskaia
