Crypto analyst Altcoin Sherpa has issued a warning for a potential decline in some altcoins such as Solana (SOL), Chainlink (LINK), and Avalanche (AVAX). The analyst predicts these altcoins may retract to expected points in December.
Altcoin Sherpa informed his followers on his personal account on social media platform X that he expects SOL, LINK, and AVAX to lose some gains before they can continue to rise. The analyst mentioned that these three altcoins could fall to the 0.382 Fibonacci levels as they prepare the stage for a rally at the beginning of 2024.
According to the analyst, the price of the popular smart contract platform Solana could retreat to the $48.72 level. At the time of writing, SOL was trading at $58.13. For Avalanche, AVAX is predicted to pull back to the $18.54 level, while at the time of writing, AVAX was trading at $20.94. For Chainlink, LINK is expected to fall back to $12.44, and at the time of writing, LINK was trading at $14.61.
The analyst also pointed out that they are closely monitoring the decentralized exchange (DEX) protocol THORChain (RUNE). The analyst stated that RUNE, like SOL, AVAX, and LINK, is expected to touch the 0.382 Fibonacci level on the four-hour time frame and pull back to the 200 exponential moving average. According to the analyst’s chart, RUNE could fall to $4.48.
According to the analyst’s expectations, significant retracements could occur in major altcoins. The 0.382 Fibonacci levels are predicted as the retracement points. Decreases could be seen in the prices of SOL, LINK, AVAX, and RUNE.