Solana -10%. Altcoins Are Crashing - What is going on?

👇1-14) When the SEC approved exchanges' 19b-4 forms on May 23 to list Ethereum ETFs, futures traders front-ran the outstanding S-1 forms, which would seal the listing date. On June 3, we pointed out that speculative positioning relative to the price of Ether had reached an extreme and could be at risk of unwinding, which could prevent Bitcoin from making a new all-time high. Although ETH declined, futures positioning is still excessive - more altcoin unwinding is in the cards.

👇2-14) Last week was a pivotal moment for crypto, one of the most critical weeks of 2024. Crypto, especially altcoins, have sharply declined. The market poorly digested the massive token unlocks from Aptos $97m, IMX $51m, STRK $75m, SEI $62m, ARB $90, APE $18m, and UNI $90m—a total of $483m. Early investors and VC investors appear under pressure to cash out. These flows are dragging down BTC.

👇3-14) Bitcoin miners have started selling their BTC inventories, and ETH balances on exchanges saw a massive increase of $2.5bn, which was previously associated with potential selling pressure. Despite better inflation data, Bitcoin ETFs saw large outflows ($-660m 5-day avg.) as overall net flows across various segments (stablecoins, futures leverage, ETFs, etc.) saw net outflows of $-2.4bn—only the third weekly decline of net flows since the launch of the ETFs in January 2024.

👇4-14) Solana was instrumental in starting the altcoin rally in October 2023 and accelerating the meme coin rally in February 2024. But as SOL-USDT breaks critical trend levels and support lines, more downside pressure might be in the cards. Mid-last week, our trading signals received a sell signal for Solana (and also for Bitcoin), while other analyses could see SOL-USDT drop to $100.

Solana breaks the large triangle formation, next target $120 and $100

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