Popular Crypto Strategist Predicts Big Drop On Altcoins; at the same timehe updates his outlook on Pepe (PEPE) and Avalanche (AVAX) a rival to the Ethereum (ETH) network. The analyst who goes by the handle Sherpa told his 195 Twitter followers that altcoins could drop as much as 50%.
A drop of between 30 and 50% on altcoins
According to the analyzes published per Sherpa, bounces are to be expected in altcoin prices as they break through key support levels.
” It is possible that altcoins will have another 30% to 50% downside from here in the long run. If that happens, there will be bounces between the two. To be honestprices are currently at support levelsso we expect rebounds at all levels here. »
As noted DailyHodlthe trader thinks the Pepe coin meme could rebound in the short term after a collapse of around 67% compared to its record level.
According to Altcoin Sherpa, a confluence of technical indicators, including Fibonacci retracement levels and the Volume Profile Visible Range (VPVR), suggests that the coin meme could see a near-term rally.
” PEPE: I think it’s a support zone; expect the price to rebound. Fib (Fibonacci) level + higher volume area on VPVR, S/R (support/resistance) level. I don’t know how high it will go, but let’s see. I still have a position on PEPE. »
Rebounds to be expected on the price of Avalanche (AVAX)
Sherpa was also interested in Avalanche, the rival of Ethereum (ETH). The notes that Avalanche has been trading in a wide range between $13 and $21 for most of 2023. He thinks AVAX might rebound once it hits the lower bound of this fork. He declares : ” AVAX: help is coming soon in around $13. »
Polygon (MATIC), a Blockchain Layer2 of Ethereum, was also the subject of an analysis by Sherpa. He thinks MATIC might find support at the $0.75 price level.
In sum, what Sherpa thinks is that altcoins will bottom out before they rebound. It would therefore be a call for investors to hold on to their cryptos despite the big drop. But who can say exactly how long this decline will last.
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