A well-regarded crypto strategist and trader is forecasting a sharp correction for Ethereum competitor Terra (LUNA) while updating his outlook on ETH and smart contract platform Avalanche (AVAX).
In a new strategy session, pseudonymous analyst Cred says LUNA may have printed a massive bull trap after printing a new all-time high around $120.
“I don’t like this structure. I’m just drawing a structure from the highest close, the December high, and then [the] weekly [candle] closed far above. Made a new all time high and the next week paper just gobbled it up…
This is a failed breakout into range high. Your normal target for this is the range low… Your bias only changes when the range high is recaptured or when the price hits the range low.”
Source: Credibility/YouTube
According to Cred, LUNA might offer some support around $60, but he highlights that the bottom of the range is close to $40, which suggests over 50% downside potential from its current price of $80.70.
The crypto strategist is also keeping a close eye on Ethereum, which he predicts will rally in the coming days. However, he warns that the rally is likely to be short-lived.
“You could get into a situation where both BTC and ETH rallies next week, but these are rallies into cluster resistance… I don’t like these types of setups.”
Source: Credibility/YouTube
The last coin on the dealer’s radar is Avalanche. Although Cred says AVAX is looking bearish after a failed breakout above $86, he notes that if bulls step in, its market structure can still be repaired.
“I think the same logic applies if you get a $86 chargeback, the chances of you getting another fakeout are pretty low, and you might get the final push towards $115, or at least through the highs Get $100 or so.”
Source: Credibility/YouTube
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