A closely followed crypto strategist remains confident in his bullish position on one top-20 altcoin project.
Pseudonymous analyst Altcoin Sherpa tells his 196,600 followers on the social media platform X that decentralized oracle provider Chainlink (LINK) is showing strength during the choppy crypto markets.
However, he warns that LINK remains in an enduring trading range and it could still take a while longer before breaking out of it.
“LINK: Flipped the EQ (equilibrium) of this range and it’s also flipped all one-day EMAs (exponential moving averages).
Still looks decent to me but overall, still in the large trading range it’s been in for over a year. Still extremely bullish on this in the next six-12 months though. Great project.”
Looking at his chart, the trader shows LINK flipped the EQ, which is the middle point where supply and demand are equal, at the $7.52 level.
LINK is trading for $7.71 at time of writing, up 3.4% in the last 24 hours.
The trader is also picking some altcoins to watch for potential moves to the upside after they held up better than the broader crypto market, including decentralized finance (DeFi) protocol Maker (MKR), decentralized cross-chain liquidity protocol THORChain (RUNE) and image-synthesizing ecosystem Render (RNDR).
“You want to look at the altcoins that are moving asymmetrical to the market right now. If you see stuff like MKR, RUNE RNDR ok, but the rest of the market down -4%-5%, those are the ones to watch. Dips are still for buying for some coins. Don’t neglect them because they ‘already pumped.’”
He notes that Ethereum (ETH) rival Avalanche (AVAX) could see a rally due to the buzz around Friend.tech-rival Stars Arena, a decentralized social finance application (SocialFi), launching on the AVAX blockchain.
“AVAX Friend.tech thing might actually send this thing higher to be honest. It’s at a critical low but it should hold as long as BTC is stable.
EMAs still pretty neutral and I wouldn’t buy this unless you are going off the AVAX Friend.tech narrative.”
Avalanche is trading for $10.13 at time of writing, up 7.8% in the last 24 hours.
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The post Analyst Says He’s ‘Extremely Bullish’ on Top-20 Ethereum-Based Altcoin in Coming Months – But There’s a Catch appeared first on The Daily Hodl.