A leading analyst is warning that crypto assets may face more downside during the current market correction.
Pseudonymous analyst and trader Bluntz tells his 222,800 Twitter followers that altcoins are trending downwards on the large time frames and could fall far more than what is currently being anticipated.
Citing the example of Polygon (MATIC), Bluntz says that the Ethereum (ETH) layer-2 scaling solution has just slipped below an ascending channel and is heading lower.
“So many altcoins losing really high time frame structure now. MATIC, for instance, is breaking down from a 12-month bear flag and just had a solid close below a year long channel.
Personally, I’m starting to think things are going quite a bit lower than many are anticipating.”
According to the analyst and trader, MATIC could plummet by up to 54% from current levels.
“[A drop to] $0.40 – $0.50 more reasonable I think.”
Polygon is trading at $0.869 at time of writing.
Turning to Ethereum, Bluntz says that the second-largest crypto asset will plunge soon after closing below a weeks-long ascending channel.
From his chart, it appears Bluntz is targeting Ethereum to fall to below $1,700. ETH is trading at $1,842 at time of writing.
“Underside bear flag retest of ETH looks done, I’m thinking the bottom falls out of this quite soon.”
Next up is Binance Coin (BNB), the utility token of the Binance Smart Chain. Bluntz says that BNB has come under severe pressure when paired against Bitcoin, falling by over 35% since late last year.
“Of all the majors BNB has got to have one of the most savage downtrends on its BTC pair, literally down only, not even remotely sideways like ETH/BTC has been.”
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Source: https://dailyhodl.com/2023/05/11/top-analyst-updates-outlook-on-polygon-ethereum-and-binance-coin-says-altcoins-to-plunge-lower-than-expected/