Recent fluctuations in the U.S. markets amidst discussions about the possible resignation of Fed Chairman Jerome Powell have piqued interest in cryptocurrencies, which are on the brink of new highs.
Barriers to New Highs
Cryptocurrency markets are demonstrating signs of growth. For the past few months, numerous metrics have indicated a potential upward trend. However, the volatility of cryptocurrencies always highlights the risks and potential losses involved. In this context, it is essential to remember that even if data suggests growth is near, the exact timing remains uncertain.
This week, despite predictions of a potential downturn, the market unexpectedly showed an increase. Short-term investors anticipating a drop were caught off guard by the sudden surge.
Movement of SOL and Other Cryptos
In the absence of news regarding Jerome Powell and uncertainties surrounding EU tariffs, potential threats to growth remain. However, as long as BTC demonstrates strength, there is little cause for concern. In the unpredictable nature of cryptocurrencies, it is prudent to balance risks. The current situation might seem favorable for realizing profits, though it is important to weigh that against the possibility of missing out on further gains.
Trader TraderXO has outlined a short-term path for SOL Coin. He stated that "the next question is whether the retracement will be shallow or deep." If the uptrend persists, the retracement should ideally remain shallow, allowing for quick buybacks from local resistance levels.
Analysts' Opinions on Current Situation
According to analyst Kyle, long-term holders of cryptocurrencies are accumulating assets faster than miners can produce new BTC. This creates a supply squeeze in the market. He also pointed out that existing circumstances are often overlooked by some market participants. Kyle emphasizes, "These investors are not speculators. Seasoned investors do not flinch at $118,000. When the next rise hits, it will be resounding."
The prospects for cryptocurrency markets remain positive despite existing risks and uncertainties. Investors are closely monitoring the situation, awaiting potential high values in the near future.
