A well-known cryptocurrency strategist believes that a popular altcoin project is on the brink of collapse. Altcoin Sherpa, an analyst known for his pseudonymous identity, shared his concerns with his large following on the social media platform X. According to Altcoin Sherpa, the altcoin in question, dogwifhat (WIF), may not have reached its market bottom yet. He describes the current situation as a “decent area” but anticipates a further decline. Altcoin Sherpa shares a chart that suggests WIF could experience a bounce to around $2.50 before dropping to the Fibonacci retracement level at $1.26.
WIF’s value has seen a significant increase, skyrocketing from $0.148 on December 20th to $2.01 at the time of writing, an impressive gain of 1,258%. Moving on to Bitcoin (BTC), Altcoin Sherpa analyzes its price action on the daily chart and notes that it is currently hovering in the middle of a trading range. He advises traders to keep their charts simple and wait for a trend confirmation. Bitcoin is currently trading at $64,922, with a slight increase in the last 24 hours.
Altcoin Sherpa also draws a comparison between the current crypto market and the late 2020 crypto cycle, specifically mentioning Solana (SOL). He suggests that the market is currently in a similar phase where altcoins may experience further decline before embarking on massive rallies. Altcoin Sherpa refers to a relevant thread and states that most altcoins may have more downside potential, and he is waiting for Bitcoin to be in a healthy state before expecting altcoins to make significant moves. Solana’s current trading value is $133, down more than 2% in the last 24 hours.
In conclusion, Altcoin Sherpa cautions investors to stay informed and highlights the importance of conducting due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. He emphasizes that transfers and trades are undertaken at one’s own risk and that any losses incurred are the individual’s responsibility. Altcoin Sherpa does not provide investment advice or recommend the buying or selling of cryptocurrencies or digital assets. The article ends by encouraging readers to subscribe for email alerts and follow The Daily Hodl on various social media platforms for the latest updates on price action and news in the cryptocurrency market.
