A closely followed crypto strategist is warning that one modular blockchain project may be on the verge of collapse.
Pseudonymous analyst Altcoin Sherpa tells his 224,000 followers on the social media platform X that layer-1 Celestia (TIA) could plummet by more than 77% from its current value due to prolonged investor selling.
The analyst cites another X user’s research allegedly showing the wallets of the project’s initial investors making steady sales.
“This is why TIA will eventually go to sub $1 in my opinion. Investors who got in at $0.02 are going to keep dumping staked tokens. Will this have some great rallies? Of course. And I plan to trade those. But long term holding this will leave you poor.”
TIA is trading for $4.53 at time of writing, down 11.4% in the last 24 hours.
Next up, the analyst says Bitcoin (BTC) may be gearing up for a September 2023 style breakout after its trading range has narrowed.
“The last time we saw this much compression with one-day EMAs (exponential moving averages) was September 2023 for BTC, right before the market skyrocketed.”
Bitcoin is trading for $60,203 at time of writing, down 2.6% in the last 24 hours.
The analyst also says that layer-2 scaling solution Stacks (STX) may be on the verge of breaking out from an accumulation phase.
“STX looks really strong overall and this looks like a clear accumulation zone. BTC projects could have a strong rally and if STX leads, expect all of the beta to follow. Haven’t checked this chart in a bit but it looks like a good one to accumulate in this range.”
STX is trading for $1.73 at time of writing, down nearly 2% in the last 24 hours.
Lastly, the analyst expresses bullish sentiment on the new Ethereum (ETH)-based “restaking” protocol Eigenlayer (EIGEN).
“EIGEN can’t really chart shit like this with no price history but buying at $4/$3.50 /$3.15. Still think its relatively undervalued.”
EIGEN is trading for $3.49 at time of writing, down 4.7% in the last 24 hours.
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Featured Image: Shutterstock/Angela Harburn/Vladimir Sazonov
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