A popular crypto analyst and trader is warning that altcoins face more downward price pressure if the current support levels fail to hold.
Pseudonymous trader Altcoin Sherpa tells his 174,900 Twitter followers that Solana (SOL), Polygon (MATIC), Avalanche (AVAX) and Terra (LUNA) are on the verge of losing their support levels.
[adinserter block="1"]The analyst says that if the support levels of the four crypto assets crumble, other weaker cryptocurrencies could get obliterated.
Solana, Avalanche and Terra are layer-1 decentralized application platforms and Ethereum (ETH) rivals while Polygon is a layer-2 scaling solution for ETH.
“These levels are on the edge of getting lost. They better continue to hold or else it’s going to be ‘lights out’ for many altcoins. And these altcoins have held up better than others; the ones that are already dead might fall even more. SOL. MATIC. AVAX. LUNA.”
The crypto strategist predicts a 33% fall for Solana if it loses support at $75.
Looking at Polygon, Altcoin Sherpa expects MATIC to fall nearly 60% if it breaks support at $1.00.
As for AVAX, a breach of support at $58 could send the Ethereum competitor down to $39, according to the crypto strategist.
Meanwhile, LUNA can drop by 25% if bears take out support at $75.
On digital assets with poorer prospects, the trader says that Algorand (ALGO), The Graph (GRT), The Sandbox (SAND) and Chainlink (LINK) are among the altcoins that face a bleaker future especially if Bitcoin (BTC) drops below $33,000.
Algorand is a payments processing-focused blockchain while The Graph is a blockchain data-indexing protocol. The Sandbox is a decentralized virtual gaming world while Chainlink is a decentralized platform connecting blockchains with external data.
“These are some examples of dead ass altcoins that could get destroyed really badly (even worse than others). ALGO. GRT. SAND. LINK.
I’m not saying that these altcoins are necessarily going to go to these low a** targets. It would take BTC going to sub $33,000 for this to happen in my opinion.”
Altcoin Sherpa predicts a 42% correction for ALGO.
The analyst sees a massive 86% correction for GRT.
For SAND, Altcoin Sherpa sees a 71% drop.
As for LINK, Altcoin Sherpa says a nearly 60% plummet is within the realm of possibility.
The crypto trader says LINK, GRT, ALGO and SAND could go up by between 50% to 200% or more once Bitcoin recovers.
“Furthermore, many of these altcoins’ charts are at support levels now, which is why I still think short-term relief could be coming.
With that said, the high timeframe market structure for 90% of these altcoins’ charts are all undeniably bearish, and I still think we get a slow bleed from them until BTC resolves itself. Once BTC does recover a bit, I think these altcoins do 50%+ to 3x (or more), depending on the level of recovery.”
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