Crypto currency analyst Altcoin Sherpa has issued a warning of a potential downturn for several altcoins, including Solana (SOL), Chainlink (LINK), and Avalanche (AVAX). The analyst expects these altcoins to retract to their anticipated points throughout December. Here are the details on the altcoins that received the downturn warning and other nuances.
Altcoins Expected to Decline Before Continuing Their Rise
Crypto analyst Altcoin Sherpa, using their personal account on social media platform X, informed followers that they expect SOL, LINK, and AVAX to lose some of their recent gains before they can continue to rise. According to the analyst, these three altcoins could potentially fall to the 0.382 Fibonacci levels to set the stage for a rally at the beginning of 2024:
“Many of the top altcoins are showing a lot of 0.382 Fibonacci levels and the 200 exponential moving average (four-hour chart) emerges: LINK, SOL, AVAX. These are the regions + 0.50 Fibonacci level I am expecting. I am waiting for more declines before the continuation of the rise. For many of these, I want to see a local bottom in January + strong movement to create long/short liquidation + consolidation.”
Altcoins in the Analyst’s Review: AVAX, SOL, LINK, and RUNE
Starting with the popular smart contract platform Solana, Altcoin Sherpa suggested that the coin could fall to $48.72. As of this writing, SOL is trading at $58.13.
Looking at another smart contract protocol, Avalanche, the analyst expects AVAX to retract to $18.54. AVAX is trading at $20.94 at the time this article was prepared.
Finally, moving on to the decentralized oracle network Chainlink, Altcoin Sherpa forecasts a retraction for LINK down to $12.44. At the time of this article’s preparation, LINK is trading at $14.61.
The analyst also revealed they are closely following the decentralized exchange (DEX) protocol THORChain (RUNE). They noted that RUNE is in the same boat as SOL, AVAX, and LINK, stating, “RUNE also has a similar outlook to the others. I am waiting for them to touch the 0.382 Fibonacci level in the four-hour time frame and retract to the 200 exponential moving average.” According to the analyst’s chart, it seems that RUNE could fall to $4.48.
- Analyst forecasts decline for key altcoins.
- 0.382 Fibonacci levels expected as retraction points.
- SOL, LINK, AVAX, and RUNE may see price drops.
