Financial Analyst Identifies Four Altcoins to Abandon Before Imminent Crash

Key Takeaways
– Crypto analyst CryptoBulle warns against blindly investing in altcoins during a bull market.
– He suggests using Fibonacci retracement levels to identify weak altcoins that are unlikely to reach previous highs.
– Several altcoins, including DOT, FIL, AXS, and ADA, are mentioned as potential strugglers based on current technical analysis.
– The altcoin market has surpassed $276 billion, driven by Bitcoin’s rise above $66,000, attracting investors’ attention to potential gains in alternative cryptocurrencies.
– However, CryptoBulle advises caution in making quick investments during this bullish wave, reminding us that market corrections are still possible.
Here’s What You Need to Know About Altcoins
CryptoBulle’s insights provide a glimpse into the complex world of altcoins, highlighting that those positioned between the 0.382 and 0.236 Fibonacci levels may struggle to surpass their 2021 peaks.
Which Altcoin Will Succeed and Which Will Not?
To determine which altcoins will reach new all-time highs (ATH) and which ones will not, CryptoBulle suggests drawing Fibonacci retracement levels from top to bottom. Altcoins that have already tested the 0.618 Fibonacci level (or even the 0.786 level) are likely to make a new ATH, indicating their strength. Examples of such coins include NEAR, AR, METIS, and AVAX.
Altcoins Under Examination
Polkadot (DOT):
Despite its strong ecosystem and advanced technology, Polkadot’s current Fibonacci analysis indicates that it may encounter challenges in reclaiming its previous ATH.
Filecoin (FIL):
Positioned as a decentralized storage solution, Filecoin’s market displays significant volatility on daily charts. Unfortunately, Filecoin is among the major losers, experiencing a steep 30% drop in the past week alone.
Axie Infinity (AXS):
Known for its play-to-earn model, Axie Infinity has shown impressive growth. However, its current position suggests potential obstacles in surpassing previous peaks. Currently, AXS is trading at $7.3, with a market cap of $1 billion.
Cardano (ADA):
As a popular Proof-of-Stake blockchain, Cardano is currently facing a bearish trend. By early May 2024, ADA’s price hovered around $0.48, marking a 25% decline over the past five months. Analysts speculate that ADA may either continue on a downward trajectory or move sideways.
Investors, Exercise Caution!
These highlighted altcoins face the risk of further price drops, making them less attractive for investors looking for entry points. CryptoBulle’s meticulous analysis underscores the importance of strategic investment approaches based on technical indicators like Fibonacci retracement levels.
On the Bright Side
CryptoBulle has identified four standout altcoins poised to enhance your investment portfolio. Discover which altcoins are predicted to shatter all-time highs in 2024 by reading more here: Top Analysts Predict These 4 Altcoins Will Shatter All-Time Highs in 2024!