Popular cryptocurrency strategist Altcoin Sherpa has given crypto traders his latest expectations. The analyst pointed to the possibility of altcoins seeing a major move to the downside. He warned that these coins could potentially fall as much as 50 percent from their current price. Here are the details…
Coin comment from Altcoin Sherpa: There may be downward movements
Altcoin Sherpa suggests that there may be some bearish rebounds as it crosses key support levels. He says that prices are currently at support levels. For this reason, he states that he expects bounces along the trading boards around this area. Altcoin Sherpa has updated its outlook on various cryptos, including Pepe (PEPE) and Avalanche (AVAX). The analyst suggests that Pepe, a meme coin, could bounce soon after falling nearly 67 percent from its all-time high.
Altcoin Sherpa notes that the combination of technical indicators, including Fibonacci retracement levels and the volume profile visible range (VPVR), suggests Pepe may be witnessing a short-term rally. The trader says Pepe is currently trading in a support area, noting that he expects the price to bounce. Pepe is currently worth $0.00000156 and is up 11.7 percent in the last 24 hours.
There are also bearish expectations for AVAX, MATIC and INJ.
Altcoin Sherpa is also looking at Avalanche. He states that this coin has been trading in a wide range of $13-$21 for most of 2023. According to the analyst, AVAX is likely to bounce when it reaches the lower end of the range. Avalanche is currently worth $15.14 and is up 1.2 percent in the last 24 hours.
Another cryptocurrency on Altcoin Sherpa’s radar is Polygon (MATIC), a layer-2 scaling solution that it says could find support at the $0.75 price level. MATIC is trading at $0.86 at the time of writing, up 3 percent over the past 24 hours.
Finally, the analyst suggests that Injective Protocol (INJ), a decentralized derivatives exchange, may see a short-term bounce in the near term. However, he warns that INJ is still in a downtrend and will drop below $4. Altcoin Sherpa states that it still expects a bounce around the current price levels and the .618 Fibonacci level. He also suggests that this is probably a good spot to stay long given the support/resistance level and the Fibonacci levels. At the time of this writing, INJ is trading at $6.07, up 4.9 percent in 24 hours. As a result, Altcoin Sherpa’s warning that altcoins could potentially drop by as much as 50% caught the attention of investors.
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