A closely watched crypto strategist believes a red-hot altcoin project is on the verge of collapse.
Pseudonymous analyst Altcoin Sherpa tells his 217,600 followers on the social media platform X that dogwifhat (WIF) may not have found a bottom in the market yet.
“WIF: Overall a decent area, I expect an upturn. But I don’t really think that’s the overall low point. Overall a strong backlash and lower expectations.”
Looking at his chart, the analyst suggests that WIF could bounce to around $2.50 before falling to the Fibonacci retracement level at $1.26.
WIF traded for $0.148 on December 20 and is worth $2.01 at the time of writing, a gain of 1.258%.
Then the analyst say that Bitcoin (BTC) price action on the daily chart is hovering in the middle of a trading range and it is waiting for a trend confirmation.
“BTC: Keep your charts simple and just relax. EQ (equilibrium price) is generally not where you want to be actively trading, but let’s see what happens.”
Bitcoin is trading at $64,922 at the time of writing, up slightly in the past 24 hours.
The analyst too suggests that the current crypto market today is similar to the crypto cycle of late 2020, when alts including Solana (SOL) continued to decline before mounting a massive rally.
“I keep quoting this thread because I think it is very relevant to today. I think we’re somewhere in the yellow boxes at the moment. Most alts probably have some more downsides and I’m more likely to wait until BTC is in a super healthy state before alts make a move.”
Solana is trading at $133 at the time of writing, down more than 2% in the last 24 hours.
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Generated image: DALLE3
