A popular crypto analyst says that one Ethereum (ETH)-based altcoin is looking ready for a big burst to the upside.
The pseudonymous trader known as Altcoin Sherpa tells his 196,000 followers on social media platform X that the decentralized oracle service Chainlink (LINK) is one of the strongest projects in the industry with the altcoin breaking out from its multi-month accumulation phase.
“LINK: You had 500+ days to buy this and you still faded it. Now you’re going to miss out on alllll the gains. I still think this is one of the best coins/projects in all of crypto. Should be excellent when it breaks out of the range.”
At time of writing, LINK is trading for $10.71, well above the upper bound of Altcoin Sherpa’s accumulation range.
However, the trader says he’s still skeptical about whether a full-blown “altseason,” or a phase where many altcoins across the board witness parabolic gains, is upon us.
He says he’s keeping an eye on Ethereum versus Bitcoin (ETH/BTC), which often gauges investors’ risk appetite for altcoins, and Bitcoin dominance (BTC.D), which tracks the percentage of the total crypto market cap that belongs to Bitcoin.
A relatively high BTC.D may suggest that investors are already overweight Bitcoin and that a liquidity shift into altcoins is possible. Altcoin Sherpa predicts BTC.D will rally slightly further before reversing near the 56% level.
“Altseason times….could be now? I am dubious. Will wait to see some other confluence with ETHBTC, BTC.D, and BTC…
BTC.D: maybe just a little higher for Bitcoin dominance and then the party starts. Though it could already be that time now.
(if you have alts, you want this to go down)”
At time of writing, BTC.D is trading at 52.43%, close to Altcoin Sherpa’s upside target of around 55%.
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