A closely followed crypto strategist believes that one 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 have yet to find a market bottom.
“WIF: decent area overall, I expect a bounce. But I don’t really think this is the overall bottom. Strong retrace overall and expecting lower.”
Looking at his chart, the analyst suggests that WIF could bounce to around $2.50 before dropping down to the Fibonacci retracement level at $1.26.
WIF was trading for $0.148 on December 20th and at time of writing is worth $2.01, a gain of 1,258%.
Next up, the analyst says that Bitcoin’s (BTC) price action on the daily chart is hovering in the middle of a trading range and he is waiting for a trend confirmation.
“BTC: keep your charts simple and just relax. EQ (equilibrium price) generally not the spot you want to actively trade at, but let’s see what happens.”
Bitcoin is trading for $64,922 at time of writing, up slightly in the last 24 hours.
The analyst also suggests that today’s crypto market today is comparable to the crypto cycle in late 2020, when alts, including Solana (SOL), declined further before taking off on massive rallies.
“I keep quoting this thread because I think it’s highly relevant to today. I think we’re somewhere in the yellow boxes currently. Most alts probably have a bit more downside to go and I’m more waiting for BTC to be in a super healthy state before alts start to move.”
Solana is trading for $133 at time of writing, down more than 2% in the last 24 hours.
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The post Trader Says Solana-Based Altcoin That’s Up Over 1,200% in Six Months Headed Lower, Updates Outlook on Bitcoin appeared first on The Daily Hodl.