Famous cryptocurrency trader says Terra (LUNA) is following in the footsteps of Chainlink (LINK). The analyst also warns crypto investors of the downside risk of Phantom (FTM). The analyst predicts a strong move on the downside for Bitcoin as well, talking about a journey that will eventually fall below $30,000.
Altcoin projects with a bearish scenario
A closely followed crypto investor and analyst says that leading altcoin Ethereum (ETH) rival Terra (LUNA) may follow the same path that decentralized oracle Chainlink (LINK) took when it suffered its last major correction. The pseudonymous analyst known as Capo tells his 248,000 Twitter followers that investors missed some striking similarities in price action between Chainlink (LINK) and Terra (LUNA). The analyst focuses on the similarities between LUNA and LINK coins, saying, “They perform very similarly when the entire market is down. “We expect LUNA to head to the lows of the range ($40-$45) after confirming the normal bearish trend.”
At the time of writing, Chainlink (LINK) is currently priced at just over $13.00, about 75% below its all-time high of $52, while Terra is trading at $89.01, 14% below its $104 peak.
Phantom and Bitcoin are also among those warned
Smart contract platform Fantom (FTM) also appears to be significantly vulnerable to further downside risks, according to renowned analyst Capo. He points out the large increase in open interest (OI) as FTM trends fall, and suggests that sentiment often tends to be very bearish as traders aggressively try to short the money. “FTM is something you don’t want to see during a downtrend. That looks pretty bad, to be honest,” he says.
As for Bitcoin, the popular analyst makes a comparison between the current price action of BTC and the price action during the big crash in May 2021. According to Capo, Bitcoin’s February relief rally and subsequent shifting price action is reminiscent of May last year, just before BTC made another price move. According to the analyst, who is closely followed by Kriptokoin.com readers, BTC is on the downside with a strong move, finally falling below $30,000.
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