A widely followed crypto analyst is warning that one red-hot altcoin must hold a key support level or it may collapse in value.
In a new thread, pseudonymous crypto trader Altcoin Sherpa tells his 255,500 followers on X that Plasma (XPL) needs to hold $1.15 as support or it may enter an enduring bearish phase, after its explosive move to the upside in the last week.
Plasma is a proof-of-stake (PoS) layer-1 project optimized for large-scale stablecoin payments and compatible with Ethereum (ETH).
“XPL: time to see if this was a one week pump and now we move to other narratives, or if this has sustainability. The $1.15 and $1.28 regions are two areas that I’m watching carefully; I think that these are strong support areas that should hold for a bounce.
Lose those areas and this thing goes to the gulag and we move on to the next thing. I’m still positioned in this and believe that it still has some legs but I’ll be quick to cut if it loses those key regions. Gave back UPNL (Unrealized Profit and Loss) but that’s OK.”
Plasma rallied from $0.100 on September 25th to $1.29 at time of writing, a gain of 1,190%. XPL reached an all-time high of about $1.68 before retracing.
Bitcoin is trading for $113,918 at time of writing, up 3.7% in the last 24 hours.
The analyst is also bullish on the utility token for the BNB Chain ecosystem, BNB.
“BNB has been the strongest major to recover so far from the dump. I think this one goes higher later on.”
BNB is trading for $1,011 at time of writing, up 3.7% in the last 24 hours.
Lastly, the analyst says that PENGU, the native asset of the Pudgy Penguins non-fungible token (NFT) collection, is setting the stage for a breakout.
“PENGU is at the 0.50 fib with the 200-day EMA (exponential moving average) right below. I expect coins like this plus Fartcoin to do pretty well on the next run (whenever that is). They had a longer time based capitulation than others and I think that this is still one of the best projects overall. Might take a bit of time before it really moves so patience is needed but still bullish overall on it.”
PENGU is trading for $0.02827 at time of writing, up 2% on the day.
