A closely followed cryptocurrency analyst and trader predicted a sharp correction for Ethereum rival Terra (LUNA) as he updated his view on Ethereum and smart contract platform Avalanche (AVAX).
Anonymous analyst Cred, who made a statement in a new video, says that after LUNA reaches its all-time high of $ 120, a huge bull trap may be encountered.
“I don’t like this structure. I just draw a structure from December high close and then weekly [candle] close above that. It hit a new all-time high and the next weekly drop engulfed it. This is a failed high-range breakout. Your normal target for this is the low range… Your bias will only change if the high range is retracted or if the price reaches the low range.” According to
Cred, the LUNA could offer some support around $60, but it has more than 50% downside potential from its current price of $80.70, emphasizing the lower end of the range near $40. pointing out.
The cryptocurrency analyst is also closely watching Ethereum, which he predicts will recover in the coming days. However, he warns that the rally will likely be short-lived.
“You should be able to see a situation where both BTC and ETH will rally next week, but these are rallies towards cluster resistance. I don’t like this kind of setup.”
The last token on the analyst’s radar is Avalanche. While Cred says that AVAX looks bearish after a failed break above $86, he notes that the market structure could still stabilize.
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