Trader Issues Warning on Altcoin That Surged About 92% in Just Weeks, Says It’s ‘Going To Head All the Way Down’

A closely followed crypto strategist is warning that one red-hot yet controversial altcoin is on the verge of a collapse.

Pseudonymous analyst Altcoin Sherpa tells his 196,600 followers on the social media platform X that Worldcoin (WLD) could decline at least 34% from its current value.

“WLD: was a great long for this, but I think it looks tired. I’m already out of this trade but if you are currently long, I would consider cutting it soon.

I think it ultimately goes to less than a $1 longer term and this is going to head all the way down. Small bounce at $1.50 though.”

Looking at his chart, the trader seems to think that Worldcoin is in a downward trend after facing resistance near the $1.90 level and will likely retest the 200-day single moving average (SMA) at the $1.50 range.

WLD hit a low of $0.978 in mid-September and soared to a high of $1.88 on September 28th, a 92% increase. The token has since retraced and is trading for $1.50 at time of writing, down 9.1% in the last 24 hours.

The trader is also closely watching Ethereum (ETH) competitor Solana (SOL) to see if it will break a key resistance level to confirm bullish momentum.

“SOL: this area coming up is a pivotal area. $26 has been a key region for S/R (support/resistance). I still think this one will be a good buy and hold for six-plus months, to be honest, one of the few you can probably invest in.

As for trading? Wouldn’t buy until it breaks $26 personally.”

SOL is trading for $23.16 at time of writing, down 1.2% in the last 24 hours.

Generated Image: Midjourney