Crypto Trader Warns Slow Grind Down Incoming for Solana, Chainlink, Avalanche and One DeFi Altcoin
A closely followed crypto strategist believes that four altcoins including Solana (SOL), Chainlink (LINK) and Avalanche (AVAX) will witness a bearish December.
Pseudonymous analyst Altcoin Sherpa tells his 198,900 followers on the social media platform X that he thinks SOL, LINK and AVAX will likely give up some of their gains before the next leg up.
According to the trader, he expects the three coins to drop to their respective 0.382 Fibonacci levels where they could potentially form a strong base to set the stage for rallies at the start of 2024.
“Many 0.382 Fibonacci levels + 200 exponential moving average (four-hour chart) are coming up on some of the best coins: LINK, SOL, AVAX.
These areas + the 0.50 Fibonacci level are the regions I’m eyeing.
Expecting more of a grind down before any strong continuation. Would like to see grind down + consolidation to form a base + strong move in January for many of these.”
Starting with the smart contract platform Solana, the trader thinks that SOL could drop to $48.72.
Source: Altcoin Sherpa/X
At time of writing, SOL is trading for $58.13.
Looking at Avalanche, another smart contract protocol, the trader thinks it could correct down to $18.54.
Source: Altcoin Sherpa/X
At time of writing, AVAX is worth $20.94.
As for the decentralized oracle network Chainlink, Altcoin Sherpa predicts a retracement toward the $12.44 level.
Source: Altcoin Sherpa/X
At time of writing, LINK is trading for $14.61.
Altcoin Sherpa is also keeping a close watch on the decentralized exchange protocol THORChain (RUNE). The trader believes that RUNE is also in the same boat as SOL, AVAX and LINK.
“RUNE: Same setup as the others…would love to see a 0.382 [Fibonacci level] tap +200 exponential moving average on the four-hour chart.”
Source: Altcoin Sherpa/X
Looking at the trader’s chart, he seems to predict that RUNE will fall to $4.48. At time of writing, RUNE is worth $6.07.
Generated Image: Midjourney
