Altcoins: Crypto analyst issues major alert on PEPE and AVAX
A popular crypto strategist has predicted a significant drop in altcoins, while also updating their outlook on Pepecoin (PEPE) and Avalanche (AVAX), a rival of the Ethereum (ETH) network. The analyst, known by the pseudonym Sherpa, informed their 195k Twitter followers that altcoins could plummet by up to 50%.
A drop between 30% and 50% for altcoins
According to Sherpa’s analysis, rebounds can be expected in altcoin prices as they surpass key support levels.
“It’s possible that alts have another 30-50% downside to go from here in the long term. If that happens, there are going to be bounces in between. Tbh, prices are currently at support levels, so expecting bounces across the board around here.”
As noted by DailyHodl, the trader believes that the memecoin PEPE could experience a short-term rebound after collapsing by approximately 67% from its all-time high.
According to Altcoin Sherpa, a confluence of technical indicators, including Fibonacci retracement levels and the visible range of the volume profile (VPVR), suggests that the memecoin could witness a short-term rally.
“PEPE: I think this is a support area; expecting price to bounce. Fib (Fibonacci) level + higher volume area on VPVR, S/R (support/resistance) level. Not sure how high it goes but let’s see. I still have a PEPE position.”
Rebounds expected in Avalanche (AVAX) price
Sherpa also took an interest in Avalanche, Ethereum’s rival (ETH). The crypto analyst observes that Avalanche has been trading within a wide range between $13 and $21 for most of 2023. He believes that AVAX could rebound once it reaches the lower limit of this range. He stated, “AVAX: Help is on the way soon in the mid $13s.”
Polygon (MATIC), an Ethereum Layer2 Blockchain, also received an analysis from Sherpa. They believe that MATIC could find support at a price level of $0.75.
In summary, Sherpa believes that altcoins will hit bottom before rebounding. This is therefore a call to investors to hold onto their cryptos despite the significant drop. However, no one can say exactly how long this drop will last.
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