A popular crypto analyst and trader warns investors that altcoins will face further downward price pressure if they fail to hold on to current support levels. warned.
The trader, nicknamed Altcoin Sherpa, has 174,900 Twitter followers; Left (LEFT), Polygon (MATIC), Avalanche (AVAX) and Terra’s (LUNA) He said he was on the verge of losing support levels.
The analyst claimed that if these four cryptoassets lose their support levels, other weaker cryptocurrencies may collapse.
Solana, Avalanche and Terra are decentralized layer-1 application platforms competing with Ethereum (ETH), on the other hand, Polygon is a layer-2 scaling solution for ETH.
“These levels are on the verge of disappearing. They better keep holding it or it will ‘lights out’ for many altcoins. And these altcoins have held up better than others; LEFT. MATIC. AVAX. LUNA. [Ancak] those who are already dead may fall even further.”
The crypto strategist predicts a 33 percent drop for Solana if it loses its support at $75.
Altcoin Sherpa, who also reviewed Polygon, draws a darker scenario for the altcoin and expects MATIC to drop by about 60 percent if it loses the support at $1.00.
As for AVAX, a breach of the support at $58 could bring down its Ethereum rival to $39, according to the crypto strategist.
Commenting on LUNA, which has shown an explosive performance in the past months, the analyst says that if the bears take the support at $75, the altcoin may drop by 25 percent.
“If Bitcoin falls, these altcoins will disappear”
Talking about cryptocurrencies with worse prospects, the trader said that if Bitcoin (BTC) drops below $33,000, a payment processing-oriented blockchain Algorand (ALGO)is a blockchain data indexing protocol. The Graph (GRT)a decentralized virtual game world The Sandbox (SAND) and a decentralized platform that connects blockchains with external data Chainlink (LINK) He says he will have a pretty bad future.
“These are some examples of dead altcoins that can be destroyed really badly (worse than others): ALGO. GRT. SAN. LINK.
I’m not saying these altcoins are definitely going to these extreme low targets. It seems to me that BTC will need to drop below $33,000 for that to happen.”
Altcoin Sherpa predicts a 42 percent correction for ALGO
The correction that the analyst expects for GRT is a rather large 86 percent.
Altcoin Sherpa says that the drop rate predicted by SAND is 71 percent.
As for LINK, Altcoin Sherpa says a drop of around 60 percent is likely.
On the positive side, the crypto trader says that LINK, GRT, ALGO, and SAND could rise between 50 percent and 200 percent or more when Bitcoin recovers.
“Also, most of the charts for these altcoins are currently at support levels, so I still think some short-term relief may come.
However, the broad-time market structure of 90 percent of these altcoins’ charts is undeniably bearish, and I believe we will still witness a steady decline in them until BTC rebounds. Once BTC recovers a bit, I believe these altcoins could increase by 50 to 3x (or more) depending on the level of recovery.”
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.