Analyst Forecasts Altcoin Corrections and Opportunities Ahead
A well-known analyst suggests that a rival cryptocurrency to Solana (SOL) is poised for a significant pullback, having surged approximately 90% in just one month.
Altcoin Sherpa shares with his substantial following of 205,800 that Sei (SEI), the native asset of the layer-1 blockchain, appears ready for a 30% retracement.
$SEI: I feel confident the .50 area is coming.
The reason is that the first .382 fib area around $0.58 already got tapped before and that had a strong reaction. That said, I think that we're going to eventually see lower levels. Not one to buy in the short term personally. pic.twitter.com/14oPBeANGc
— Altcoin Sherpa (@AltcoinSherpa) January 20, 2024
Expressing confidence, the analyst predicts an opportunity for traders to accumulate the altcoin at the 0.50 Fibonacci level, around $0.48. He highlights the previous strong reaction at the $0.58 level, suggesting a potential decline to lower levels in the future. However, he cautions against short-term buying.
As of the latest update, SEI is currently trading at $0.679.
Shifting focus to Manta Network (MANTA), a privacy-focused cryptocurrency project, Altcoin Sherpa expresses a belief that the altcoin may experience a decline.
$MANTA: Aping into new coins is probably a decent idea for binance. this one has a decent amount of TVL but I wouldnt buy until the low $2s personally. pic.twitter.com/zMXaMQvfir
— Altcoin Sherpa (@AltcoinSherpa) January 20, 2024
Regarding MANTA, he suggests that entering new coins might be a reasonable idea for Binance. However, he advises waiting until the low $2s before considering a purchase. At the time of writing, MANTA is priced at $2.24.
READ MORE: XRP Bulls Rally: Can Historical Trends Spark a January Surge?
In the case of Bitcoin (BTC), Altcoin Sherpa anticipates a potential drop below its critical psychological support level of $40,000.
$BTC this area is still support for now but the next area up would be 36k. lots of confluence w. 200d EMA, .382 fib/ support. Those make it a very easy long IMO. #Bitcoin pic.twitter.com/c09x2Fqrel
— Altcoin Sherpa (@AltcoinSherpa) January 20, 2024
Highlighting the current support at $41,600, he identifies the next significant support area at $36,000, citing alignment with the 200-day exponential moving average (EMA) and the 0.382 Fibonacci level. Despite the potential downturn, he views this as a straightforward long opportunity.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
