Cryptocurrency Trader Cautions on Impending Gradual Decline for Solana, Chainlink, Avalanche, and a DeFi Altcoin

Altcoin Sherpa’s Analysis

Pseudonymous analyst Altcoin Sherpa, with a substantial following of 198,900 on the social media platform X, anticipates that SOL, LINK, and AVAX might experience a temporary setback before resuming an upward trend.

According to Altcoin Sherpa, these three coins are expected to decline to their respective 0.382 Fibonacci levels, where they could potentially establish a robust foundation for rallies in the beginning of 2024.

“Many 0.382 Fibonacci levels + 200 exponential moving average (four-hour chart) are coming up on some of the best coins: LINK, SOL, AVAX.

These areas + the 0.50 Fibonacci level are the regions I’m eyeing.

Expecting more of a grind down before any strong continuation. Would like to see grind down + consolidation to form a base + strong move in January for many of these.”

Individual Coin Predictions

Solana (SOL)

Altcoin Sherpa predicts that SOL could drop to $48.72. At the time of writing, SOL is trading for $58.13.

Avalanche (AVAX)

Looking at Avalanche, Altcoin Sherpa suggests a correction down to $18.54. At the time of writing, AVAX is worth $20.94.

Chainlink (LINK)

For the decentralized oracle network Chainlink, Altcoin Sherpa anticipates a retracement toward the $12.44 level. At the time of writing, LINK is trading for $14.61.

Additional Coin Under Observation

Altcoin Sherpa is also closely monitoring the decentralized exchange protocol THORChain (RUNE). The trader believes that RUNE is in a similar situation as SOL, AVAX, and LINK.

“RUNE: Same setup as the others…would love to see a 0.382 [Fibonacci level] tap + 200 exponential moving average on the four-hour chart.”

Looking at the trader’s chart, it appears that RUNE is expected to fall to $4.48. At the time of writing, RUNE is worth $6.07.

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