Ethereum-Powered Altcoin Showing Strong Potential for a Significant Breakout, Notes Crypto Analyst

A popular crypto analyst says that one Ethereum (ETH)-based altcoin is looking ready for a big burst to the upside.

Altcoin Sherpa, a pseudonymous trader with 196,000 followers on the social media platform X, expresses the view that Chainlink (LINK), a decentralized oracle service, is one of the most robust projects in the cryptocurrency sector. According to Altcoin Sherpa, LINK has emerged from a multi-month accumulation phase and could potentially yield substantial gains.

"LINK: You had more than 500 days to invest in this, and you still hesitated. Now, you might miss out on significant gains. I still consider this one of the finest cryptocurrencies and projects in the entire crypto space. It should perform exceptionally well when it breaks out of its current range."

As of the current market conditions, LINK is trading at $10.71, well above the upper boundary of Altcoin Sherpa's previously mentioned accumulation range.

Nonetheless, Altcoin Sherpa remains cautious about whether a full-scale "altseason," characterized by widespread parabolic gains in various altcoins, is currently underway. The trader is closely monitoring the Ethereum-to-Bitcoin (ETH/BTC) pair, which often serves as an indicator of investor appetite for altcoins, and Bitcoin dominance (BTC.D), which measures the portion of the total crypto market capitalization held by Bitcoin.

A relatively high BTC.D value may indicate that investors are heavily positioned in Bitcoin, potentially paving the way for a shift of liquidity into altcoins. Altcoin Sherpa expects that BTC.D will experience a minor uptrend before reversing, likely near the 56% level.

The trader suggests that while the prospect of an "altseason" may be on the horizon, further confirmation will be sought through concurrent developments in ETH/BTC, BTC.D, and Bitcoin's price.

These dynamics are crucial for gauging the relative attractiveness of altcoins compared to Bitcoin in the current market environment.

At the present moment, Bitcoin dominance (BTC.D) is trading at approximately 52.43%, which is in proximity to Altcoin Sherpa's anticipated upper target of around 55%. This suggests that Bitcoin is still dominant in the cryptocurrency market, but the altcoin season may be nearing if BTC.D continues to decline.

Oct 24, 2023