The crypto market has finally turned green after a disappointing week. Bitcoin, the market leader, rose about 9%, while Ethereum climbed close to 10%. With a gain of nearly 15%, Terra (LUNA) is the top performer among the main altcoins.
Despite outperforming several other digital assets over the previous few months, a renowned crypto analyst is warning investors that two popular cryptocurrencies have gloomy outlooks.
Terra (LUNA)
Smart Contracter, a pseudonymous analyst, warns his Twitter followers that stablecoin issuer and Ethereum competitor Terra (LUNA) is headed for a bumpy ride.
“LUNA, another of the leaders over the last six months, looks well and truly cooked.”
According to the strategist’s charts, LUNA’s support levels, which it has held since July 2021, have reversed and transformed into regions of resistance in recent weeks.
Terra’s 45 percent price climb to around $68 this week, its strongest level since Jan. 25, has given rise to a short-term pessimistic view. If the retreat occurs, the price might fall to its interim downside objective of $52 if it occurs.
Avalanche (AVAX)
It is a smart contract-enabled blockchain that presently ranks as the eleventh-largest crypto asset by market cap, is the next challenger to Ethereum (ETH).
According to Smart Contracter, Avalanche is under severe downside sell pressure when coupled with Bitcoin (BTC), as the layer-1 scaling solution is hitting lower highs after achieving an all-time high against BTC in December. This pattern is “very concerning,” according to the crypto strategist.
He says, AVAX/BTC looks risky right now. It appears like a significant macro lower high is attempting to be established. And in the last six months, this has been one of the more powerful leaders. So that’s a bit concerning.
