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.
[adinserter block="1"]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.
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.
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.
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.”
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.
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