A popular crypto analyst says Avalanche (AVAX) and other leading layer-1 platforms are starting to flash signs of weakness.
Pseudonymous analyst Smart Contracter tells his 205,000 Twitter followers that smart contract platform Avalanche looks bearish after printing consecutive lower highs in its USD and Bitcoin (BTC) pairs.
“AVAX still looks very very unhealthy, against BTC and USD.
[It is] starting to look how Solana distributed in November. [I] wouldn’t be surprised to see another -50%.”
Back in November, fellow smart contract platform Solana (SOL) printed an all-time high of $259. The Ethereum (ETH) competitor has been in a downtrend since and is now exchanging hands for $83.06.
Meanwhile, AVAX is trading at $73, down over 50% from its all-time high of $147.
Smart Contracter adds that other layer-1 crypto assets appear to be following AVAX’s footsteps.
“All the strong layer-1s that had been leading the pack for this year AVAX, LUNA, ATOM [and] FTM are starting to look atrocious.”
Cosmos (ATOM), an ecosystem of blockchains designed to scale and communicate with each other, is down big, losing nearly 50% of its value from its record high of $44.70.
Smart contract platform Fantom (FTM) has lost over 60% of its value from its high of $3.48 in October.
As for decentralized finance (DeFi) payment network Terra (LUNA), it is trading at $87.81, down almost 18% from its all-time high of $103.60.
Looking at Bitcoin, the crypto strategist predicts a short-term bounce for BTC above $40,000 before the top crypto resumes its downtrend.
“Weekly closed awful on BTC and ETH and looking like any early-week strength up to $42,000 is probably a short back to range lows again, in my opinion.”
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