Saturday, July 2, 2022

Top crypto analyst foresees a 50 % drop in SOl, AVAX, and other altcoins.

The Takeaway:

The analyst warns that Solana, Avalanche, and two more Ethereum rivals might crash by 50% if Bitcoin falls further.

According to a renowned crypto expert, if Bitcoin (BTC) continues to tumble, four Ethereum (ETH) competitors will have a grim future.

Pseudonymous trader Altcoin Sherpa warns on Twitter that smart contract-enabled blockchains Solana (SOL), Avalanche (AVAX), Polkadot (DOT), and NEAR Protocol (NEAR) are all ready to lose about 50% of their value if Bitcoin continues to fall.

Polkadot is now trading at $9.76.  

polkadot chart

The analyst then turns his attention to Solana, which is now trading at $41.79 at writing.

SOL USDT

Altcoin Sherpa also examines the Avalanche, which is presently trading at $22.42.

AVAX USD

The trader then monitors NEAR Protocol, which is currently trading at $5.05.

NEAR USD

Bitcoin is currently trading at $28,730 (At the time of writing), a more than 28% decrease in the last 30 days.

 

One coin that may rise

While Altcoin Sherpa is pessimistic about the four Ethereum competitors, he believes TRON (TRX), a blockchain built as a decentralized storage and distribution network for social media and digital entertainment content, has some upside potential.

TRON might rise by almost 40% to $ 0.12 from present levels if the price of Bitcoin “stabilizes,” according to Altcoin Sherpa, as the crypto asset’s founder, Justin Sun, announces new projects.

Sun just announced USDD (USDD), an algorithmic stablecoin based on the TRON blockchain that is supposed to swap one for one with the US dollar. The market capitalization of the USDD is now about $577 million.

$TRX: 1 of the few coins you can look for longs; wouldn’t do it in this current area but Justin Sun is moving his shitcoin higher. If BTC stabilizes, I would assume this goes to .12. #TRON.”

At the time of press, TRON was changing hands for $0.08.

Views on Bitcoin

The analyst further commented that there is very likelihood of Bitcoin pumping up to $ 35,000. Also, Sherpa believes that $ 20,000 is soon possible as BTC slowly bleeds out. A similar thing happened in 2018. 

BTC USD

$BTC: I keep thinking that we’re going to get a relief pump up to mid high 30ks, but I’m not even sure we get that anymore. One reason why 2018 sucked was because of the way it slow bled down; this is feeling similar. This area is the last stop before 20k. #Bitcoin

However, there are more market participants this time around, and hence, the chances of this slow bleed out are low. Still, the market might bounce once before hitting the $ 20,000 mark.

“I didn’t think we would slow bleed as badly as back then due to more derivs being in the space today + better market structure. but it appears I’m wrong. I actually do think we eventually hit 20k but I personally still think some small bounce before then.”

 

Overall crypto market is stumbling.

The markets have been in a severe downtrend since the start of the year. The terraUSD blunder exacerbated the situation. Since then, the market capitalization of the whole crypto market has plummeted by more than 25 %. The total market cap is now $ 1.182 trillion, down from $ 1.569 trillion since May 9. Overall, it is down by 61 % from its all-time high of $ 3 trillion mark. 

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jesse Kirby
Jesse Kirby
Since his childhood days, Jesse was fond of writing and learning new things. He developed a special interest in bitcoin back in 2011 and started to get deep into the crypto space. After completing his masters degree from Bnos Menachem School, New York, Jesse became a full time writer and crypto analyst.

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