A closely followed crypto strategist and trader is predicting 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 that LUNA may have printed a massive bull trap after printing a fresh all-time high of around $ 120.
“I do not like this structure. I’m just drawing a structure from the highest close, the December high, and then [the] weekly [candle] closed way above it. Made a new all-time high and the next weekly just bearish engulfed it…
That’s a range-high failed breakout. Your normal target for that is the range low… Your bias shifts only if the range high is reclaimed or if price reaches the range low. ”
According to Cred, LUNA may offer some support at around $ 60, but he highlights that the bottom of the range is close to $ 40, suggesting a downside potential of over 50% from its current price of $ 80.70.
The crypto strategist is also keeping a close watch on Ethereum, which he predicts will rally in the coming days. However, he warns that the rally will likely be short lived.
“You might end up in a situation where next week both BTC and ETH rally, but those are rallies into cluster resistance… I do not like those types of setups.”
The last coin on the trader’s radar is Avalanche. Although Cred says AVAX looks bearish after a failed breakout above $ 86, he notes that its market structure can still be fixed if bulls step up to the plate.
“I think the same logic applies where if you get an $ 86 reclaim, the likelihood that you get another fakeout is pretty low and maybe you get that final push towards $ 115 or at least through the high $ 100 or thereabouts.”
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