- Altcoin Sherpa projects corrections in Solana, Chainlink, Avalanche and an altcoin DeFi, marking a downtrend in December.
- Technical analysis suggests declines towards Fibonacci levels, setting solid foundations for possible rallies in early 2024.
Renowned altcoin analyst Sherpa issues an insightful alert aimed at investors. With an audience bordering 198,900 followers on the X platform, Sherpa projects a December decline for Solana (SOL), Chainlink (LINK), Avalanche (AVAX) and an altcoin DeFi still in the shadows. Their technical analysis suggests a correction towards crucial Fibonacci levels, thus mapping out an intriguing scenario for the near future.
The pseudonymous analyst, Altcoin Sherpa, shares his insights with his 198,900 followers on social network X. In his outlook, SOL, LINK and AVAX could sacrifice some of their gains before initiating the next bullish phase.
Sherpa lays out his technical approach, projecting that these three currencies could decline to their respective 0.382 levels on the Fibonacci sequence. Here, they would possibly cement a robust base to pave the way for possible rallies in early 2024.
“Numerous 0.382 levels of Fibonacci 200 exponential moving average (four-hour chart) are converging on some of the major currencies – LINK, SOL, AVAX. These areas, along with the 0.50 Fibonacci level, are the areas I am monitoring.”
Altcoin Sherpa identifies significant convergence of factors in several prominent coins, specifically LINK, SOL and AVAX. The convergence manifests itself in the coincidence of the 0.382 Fibonacci levels and the 200 exponential moving average on the four-hour chart.
These levels, along with the inclusion of the 0.50 Fibonacci level, are the critical areas that the analyst is watching closely. The choice of these indicators suggests that Altcoin Sherpa is paying attention to key support and resistance points, using tools such as the Fibonacci sequence and moving average to assess potential reversal or trend continuation levels.
He adds cautiously, “I anticipate additional attrition before any significant resurgence. I would prefer to watch a gradual decline consolidation to forge a solid base firm move in January for many of these.”
Starting with Solana smart contract platform , the trader envisions SOL could decline to $48.72, while at the time of writing, SOL is trading at $58.13.
Interpreting this information involves recognizing that the trader sees risks or factors that could lead to a decrease in the SOL price. However, the market can be influenced by various factors, such as news, technological developments, general cryptocurrency market trends, among others.
In relation to Avalanche, another smart contract protocol, Altcoin Sherpa hints at a possible correction to $18.54, with AVAX being valued at $20.94 at the time of writing.
For decentralized oracle network Chainlink, the analyst forecasts a pullback towards the $12.44 level, while LINK is trading at $14.61 at the time of writing.
Altcoin Sherpa also remains mindful of the THORChain decentralized exchange protocol (RUNE), seeing RUNE as being in a position analogous to SOL, AVAX and LINK.
“RUNE: Identical setup to the others…I would love to witness a touch at the 0.382 [Fibonacci level] 200 exponential moving average on the four-hour chart.”
Examining the trader’s chart, he seems to anticipate RUNE to drop to $4.48, while at the time of this writing, RUNE is worth $6.07.
In this challenging December, investors and passionate followers of the crypto space will be watching closely to see how these forecasts unfold and whether the predicted downtrend will materialize for SOL, LINK, AVAX and the mysterious altcoin DeFi in question. The cryptosphere, always weaving surprises, has answers in store for us in the coming market moves.
