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A pseudonymous cryptocurrency analystissued a warning to investors and traders in the digital currency ecosystem, predicting a gradual decline for several prominent cryptocurrencies, including Solana SOL/USD , Chainlink LINK/USD , Avalanche AVAX/USD and the decentralized finance (DeFi) token Rune RUNE/USD .
Altcoin Sherpa's analysis focusedon specific technical indicators, particularly the .382 Fibonacci retracement levels and the 200-day Exponential Moving Averages (EMAs) on the four-hour charts.
These indicators are often used by traders to predict potential reversal points or support levels in the market.
In thetweet, Altcoin Sherpa said, "Many .382 fibs + 200 EMAs (4h) are coming up on some of the best coins. $LINK $SOL $AVAX. These areas + the .50 fib are the regions I'm eyeing."
This suggestedAltcoin Sherpawasclosely monitoring these levels as potential areas where the price might stabilize or rebound.
The analyst expecteda "grind down" period for these cryptocurrencies before any significant upward trend continued. This term refersto a slow and steady price declinerather than a sharp drop.
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Altcoin Sherpa believedthis gradual decrease wouldlead to a period of consolidation, which was a phase whenprices stabilize and move sideways.
The analyst anticipatedthis consolidation will form a strong base for a potential robust upward movement in January for many of these digital assets.
Regarding the DeFi token RUNE, Altcoin Sherpa's analysis followeda similar pattern.
He tweeted, RUNE: Same setup as the otherswould love to see a 0.382 [Fibonacci level] tap +200 exponential moving average on the four-hour chart.
This indicatedhis expectation that RUNE wouldalso experience a decline to its .382 Fibonacci level combined with the 200 EMA, which could be a crucial juncture for the token.
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