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."

 

Source: Altcoin Sherpa/X

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.

Source: Altcoin Sherpa/X

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

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