A widely respected cryptocurrency strategist is warning about the altcoin market as if projects like Chainlink (LINK) are correct.
Pseudonymous analyst Altcoin Sherpa says Most altcoins could enter a months-long consolidation phase, said 214,900 followers on social media platform X.
“It is very likely that the altcoin will be completed over the next 1-4 months. “There will certainly be outliers, but I think the majority need time to unwind and integrate after such a big accomplishment.”
The analyst says Chainlink, a provider of decentralized oracle services for smart contracts, is an example of another alternative. According to analysts, LINK is correcting after a four-fold rise after a long accumulation phase.
“The scary thing is that a lot of Alts haven’t even been playing that hard over the last few months. Look at coins like LINK. It has been accumulating for over 500 days and has only made 3-4x profits (depending on where you entered) and is now seeing significant price declines.”
LINK is trading at $13.21 at the time of this writing, down more than 1% in the last 24 hours.
The analyst believes that only certain sectors of the cryptocurrency market will perform well in the coming months, including well-established projects such as Ethereum (ETH) and Solana (SOL).
He also highlights the strengths of artificial intelligence (AI)-related projects, Memecoin, and recent projects such as Ethena (ENA), a governance token launched by Ethena Labs for the project’s decentralized finance protocol, and cross-chain messaging protocol Wormhole (W). looking forward.
“Currently we have very fragmented liquidity with only a few sectors pumping…
I think other general coins will also receive some attention, but the areas I am mainly focusing on are as follows.
1. Meme: Of course
2. Go to actual values. There is so much crap on the market that boring stuff like ETH, SOL, etc. is probably good.
3. Big token launch. Think of something like ENA. They have tons of money and a lot of marketing behind them and they have real value. Although coins like W have underperformed, I think they are still performing well once BTC stabilizes. MM (Market Maker) will send it higher.
4- AI: Of course.”
At the time of writing, ENA is trading at the $0.9311 level and W is trading at $0.5697.
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