Altcoins
Trader Says Solana-Based Altcoin Up Over 1,200% in Six Months, Updates Bitcoin Outlook
A closely followed crypto strategist believes a red-hot altcoin project is on the verge of collapse.
Pseudonymous Altcoin Analyst Sherpa tell his 217,600 followers on the social media platform X que dogwifhat (Wireless) may not yet have reached a market bottom.
“WIF: OK neighborhood overall, I’m waiting for a rebound. But I don’t really think that’s the general background. Strong retracement overall and expectation of a decline.
Source: Altcoin Sherpa/X
Looking at his chart, the analyst suggests that WIF could bounce up to around $2.50 before dropping back down to the Fibonacci retracement level at $1.26.
WIF was trading at $0.148 on December 20 and was worth $2.01 at the time of writing, a gain of 1,258%.
Then the analyst said than Bitcoin (BTC) price action on the daily chart is oscillating in the middle of a trading range and it is waiting for trend confirmation.
“BTC: Keep your charts simple and relax. The EQ (equilibrium price) is usually not where you want to actively trade, but let’s see what happens.
Source: Altcoin Sherpa/X
Bitcoin is trading at $64,922 at the time of writing, up slightly over the past 24 hours.
The analyst also suggests that today’s crypto market is comparable to the crypto cycle of late 2020, when alternatives including Solana (GROUND), fell further before heading back towards massive rebounds.
“I keep quoting this thread because I think it is very relevant today. I think we are currently somewhere in the yellow boxes. Most alts probably have a bit more downside to overcome and I’m more waiting for BTC to be in a super healthy state before alts start moving.
Source: Altcoin Sherpa/X
Solana is trading at $133 at the time of writing, down more than 2% in the last 24 hours.
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