Mini altcoin season could be brewing with Chainlink and three crypto assets showing signs of accumulation: analyst
A well-known crypto analyst says there is a possibility that the altcoin market is preparing for a breakout.
Pseudonymous altcoin analyst Sherpa tells his 184,000 Twitter followers that while it’s possible Bitcoin (BTC) is preparing to drag crypto markets to new lows, he also sees a scenario in which one of the major altcoins has a “mini- altcoin season” triggers.”
The closely-followed analyst shares charts for interoperability blockchain Polkadot (DOT), oracle decentralized network Chainlink (LINK), smart contract platform Fantom (FTM) and Ethereum (ETH) rival Avalanche (AVAX) that suggest that altcoins are in accumulation mode.
“What if a lot of these altcoins accumulate?
I’m still thinking of another leg down because I think BTC has legs down but…I’ll be open to a mini alternative season if we see something explode and lead the market.”
Source: Altcoin Sherpa/Twitter
At the time of writing, Polkadot is trading at $6.24, around altcoin Sherpa’s support area.
Chainlink is currently valued at $7.10, within the analyst’s accumulation range.
As for FTM, the Ethereum competitor is trading at $0.219, near altcoin Sherpa’s immediate support level.
Looking at AVAX, altcoin Sherpa’s chart suggests that the smart contract protocol may be forming a double bottom pattern.
The analyst also suggests that XRP could be the coin to start an altcoin rally given the right circumstances.
“XRP could lead the market, but usually you need some kind of narrative.”
Regarding Bitcoin, the analyst says he sees an imminent correction for BTC.
“BTC: still a range; EMAs (exponential moving averages) are catching up on the price. We still anticipate choppy price action with a possible further move down to $18,000 fairly soon.”
At the time of writing, BTC is changing hands at $19,223, unchanged on the day.
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