- A popular crypto trader predicts a more than 22% decline for Avalanche (AVAX), citing a key resistance level and dependency on Bitcoin’s performance.
- The same analyst sees potential bullish signals for Dogecoin (DOGE) and suggests a favorable entry point for Polygon (MATIC) at a specific Fibonacci level.
Avalanche Poised for a Significant Drop
A well-followed crypto analyst, known as Altcoin Sherpa, has shared insights with his nearly 200,000 followers on social media, predicting a substantial downturn for Avalanche (AVAX). According to his analysis, AVAX, currently trading at $20.60, is likely to experience a decline exceeding 22%. This prediction is based on the observation that AVAX might struggle to maintain its current level, especially if Bitcoin (BTC) doesn’t show signs of improvement.
The analyst’s chart indicates a pullback for AVAX upon crossing a crucial resistance at $21.17, a pattern observed historically.
Dogecoin: Signs of a Bullish Trend
Turning to Dogecoin (DOGE), the analyst highlights some intriguing movements in the memecoin’s recent activity. He notes that DOGE is at a pivotal point and could potentially form a bullish market structure if it manages to establish a higher high in price along with a higher low. However, the analyst remains cautious, suggesting that DOGE’s performance might not match its past highs due to its current market capitalization.
Despite this, he hints at possible opportunities in other meme cryptocurrencies further down the risk spectrum. Dogecoin is currently trading at $0.0819, marking a 6% increase in the last 24 hours.
Polygon: Identifying an Optimal Entry Point
Lastly, Altcoin Sherpa shares his perspective on Polygon (MATIC), a blockchain scalability solution. He believes a favorable entry point is approaching at $0.75, suggesting potential for a rebound from this level. This assessment is based on the Fibonacci retracement tool, a popular technical analysis method used by traders to identify potential support and resistance levels. Polygon, at the time of writing, is valued at $0.80, having experienced a 9.7% decrease over the past day.
In summary, the crypto market continues to present a dynamic landscape, with individual cryptocurrencies showing varying degrees of volatility and potential. The predictions made by Altcoin Sherpa offer a glimpse into the possible future movements of Avalanche, Dogecoin, and Polygon, reflecting the continual need for strategic analysis and market vigilance in the world of digital assets.