A widely followed crypto analyst is issuing fresh warnings for a trio of altcoins as the markets attempts to recover from a lengthy downtrend.
The pseudonymous trader known as Altcoin Sherpa tells his 183,000 Twitter followers that layer-1 blockchain Avalanche (AVAX) and Ethereum (ETH) scaling solutions Polygon (MATIC) and Optimism (OP) are primed to see downswings.
The analyst says that bearish market conditions could push AVAX below $13 before it sparks a recovery.
“AVAX: Overall market structure is still bearish, if this is the bottom then wouldn’t be surprised to see at least one last shakeout to $13 or lower and then recovery starts. It would look like a double bottom (chop around for several months too). Still bearish for now.”
AVAX is trading for $17 at time of writing.
Altcoin Sherpa then sets his sights on MATIC, and says that he expects the crypto asset to see a sizeable dip before settling near $0.60 close to the end of the year.
“MATIC: Higher time frame idea for this one… looking at $0.60.”
MATIC is changing hands for $0.733 at time of writing, more than a 50% correction away from the analyst’s lowest target of $0.35.
Looking at OP, Altcoin Sherpa says that he sees the layer-2 dropping to $0.50 and won’t spark a bounce back for quite some time.
“OP: Probably going to $0.50 or so in the longer term… I don’t see this going on a run for a long time. Don’t buy this for the long term in my opinion.”
OP is valued at $0.89 at time of writing.
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Feaatured Image: Shutterstock/BRADLEY LAWSON
