A widely followed analyst believes that a Solana (SOL) competitor is primed for deep retracement after rallying by about 90% in just a month.

Pseudonymous analyst Altcoin Sherpa tells his 205,800 followers that the native asset of the layer-1 blockchain Sei (SEI) looks ripe for a 30% retracement.

According to the analyst, he feels “confident” that traders will have a chance to accumulate the altcoin at the 0.50 Fibonacci level around $0.48.

“The reason is that the first 0.382 Fibonacci 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.”

Source: Altcoin Sherpa/X

At time of writing, SEI is trading for $0.679.

Looking at the privacy-focused crypto project Manta Network (MANTA), the trader thinks that the altcoin is likely headed to lower levels.

“MANTA: aping into new coins is probably a decent idea for Binance. This one has a decent amount of TVL (total value locked), but I wouldn’t buy until the low $2s personally.”

Source: Altcoin Sherpa/X

At time of writing, MANTA is trading for $2.24.

As for Bitcoin (BTC), Altcoin Sherpa thinks that BTC will likely move below its key psychological support at $40,000.

“BTC this area ($41,600) is still support for now but the next area up would be $36,000. Lots of confluence with 200-day EMA (exponential moving average), 0.382 Fibonacci [level]/support. Those make it a very easy long, in my opinion.”

Source: Altcoin Sherpa/X

At time of writing, BTC is worth $41,744.

Generated Image: Midjourney

The post Trader Predicts Deep Correction for Solana Rival, Updates Outlook on Privacy-Focused Altcoin appeared first on Crypto News Australia.

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Filed under: Bitcoin - @ January 22, 2024 1:33 am