“Is it safe?” This is the pivotal question for crypto investors holding onto any available cash after the recent price plunge.
Markus Thielen from 10X Research had accurately predicted the downturn and remains hesitant to jump in for a bargain just yet.
Similar to the speculative bubble in DeFi and NFTs that burst after the 2021 bull market—resulting in a significant hit to ETH from which it has yet to bounce back—this latest trend has seen a sharp decline in memecoins. This downturn has adversely affected not only Solana (SOL) but a variety of related tokens, according to Thielen.
“This ongoing structural decline points to a weak foundation, suggesting that it’s a period for caution rather than complacency,” Thielen noted in a report released on Tuesday. “Bitcoin (BTC) is gradually approaching $73,000… If historical patterns hold true, the next significant upward movement will demand a fresh narrative.”