A widely followed crypto strategist says Ethereum (ETH) challenger Polkadot (DOT) could witness a massive 56% haircut from its current price level before finding some stability.
Pseudonymous analyst Altcoin Sherpa tells his 179,900 Twitter followers that interoperable blockchain Polkadot could find support at significantly lower price levels.
“DOT: $3-$5 probably good place to start accumulating this thing. High volume node around there. This chain was a pretty big failure so far in my opinion.”
At time of writing, DOT is changing hands for $6.85.
The strategist is also keeping an eye on altcoins Cosmos (ATOM) and LooksRare (LOOKS). Altcoin Sherpa says that ATOM and LOOKS are still in a heavy downtrend but there’s a chance that they could print a short-term reversal pattern.
“Not seeing any reversal patterns quite yet. You could maybe see some Adam and Eve double bottom but the trend is still undeniably bearish. Doubtful these play out, but this is what you would watch for reversal in the short/mid term.”
LOOKS, the utility token of the Ethereum-based NFT marketplace LooksRare, is trading at $0.27 at time of writing, down nearly 4% on the day.
Cosmos, an ecosystem of blockchains designed for both scalability and interoperability, is currently valued at $8.00.
Looking at leading digital asset Bitcoin, Altcoin Sherpa says he sees BTC lingering in bear territory for an extended period of time.
“Its gonna take months to chop around and accumulate once the bottom is found. And the bottom might not even come for another few months from today. Hunker down for a long bear market”
At time of writing, BTC is valued at $19,183.
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Featured Image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia