A closely followed crypto strategist and trader forecasts a sharp correction for Ethereum rival Terra (LUNA) as he updates his view on ETH and smart contract platform Avalanche (AVAX). Here are the details…
Analyst predicts these levels for Terra (LUNA)
In a new strategy session, alias Cred said that after LUNA hit $120, a massive hit. He says he may have created a bull trap. Stating that he likes this formation, the analyst states that “it only creates a formation from the highest close of December, and then the weekly candle is closed above it”. He says that this candle hits an all-time high and then the next weekly drop engulfs the candle, using the following phrases:
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 Credit, the LUNA could offer some support around $60, but it highlights the lower end of the range near $40, 50 percent off its current price of $80.70. It indicates a downside potential.
Analyst also shared his prediction for Ethereum and Avalanche
The crypto strategist 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. The analyst states that both Bitcoin (BTC) and Ethereum (ETH) may rally next week, but these are rallies towards “cluster resistance”. He states that he does not like such formations.
The last token on the trader’s radar was Avalanche. While Cred says that AVAX appears to be bearish after a failed break above $86, he notes that there is still a possibility that the market structure will stabilize if the bulls rise in the market. The analyst uses the following statements on the subject:
I think the same logic, if you get a refund of $86, the probability of you seeing another fake move is pretty low and maybe towards $115, or at least towards the high $100 or so. You can make the last move.
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