Analysis

Two ETH rivals are on the verge of a catastrophic collapse, top traders warn

Two ETH rivals are on the verge of a catastrophic collapse, top traders warn.

Leading analyst Smart Contracter is warning investors that two popular altcoins are likely to crash despite outperforming many other digital assets in recent months.

According to Contracter, stablecoin issuer Terra (LUNA) and Ethereum competitor are likely to experience short-term volatility.

“LUNA is really exhausted despite being one of the other top coins in the last 6 months.”

LUNA support levels, held since July 2021, have tipped into resistance over the past few weeks, according to the strategist’s chart.

Source: Smart Contractor

According to CoinMarketCap data, Terra’s LUNA token is up 25% over the past 24 hours as the overall crypto market recovers. Terra’s double-digit gain nearly reversed the previous day’s losses as the crypto and traditional markets tumbled.

Source: CoinMarketCap

LUNA was trading at $64.11 at press time from the previous day’s low of $50.27, with volume of 4.96 billion tokens traded in 24 hours. After months of decline, the 25% price surge is one of LUNA’s most significant gains of late. Despite this, the price is still down 37.33% from the all-time high of $103 set on December 27, 2021.

Since recovering from $48.97 on Feb. 21, Terra has had four straight days of positive action. The next hurdle for could be around $69 if the asset continues to rise.

Next is Avalanche, a smart contract-enabled blockchain that is currently the 10th largest cryptocurrency by market cap.

The contractor says AVAX/BTC is facing severe bearish selling pressure as this Layer 1 scaling solution is now setting a lower high after hitting ATH against BTC in December. The strategist stressed the “worrying” trend.

Source: Smart Contractor

“AVAX/BTC looks risky here. Looks like it’s trying to set a serious macro lower high. This has been one of the strongest leads over the last 6 months. So it’s definitely worrying.”

AVAX is trading at $73.97 at press time, down about 16% over the past 7 days and down 50% from ATH’s November success.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.