A widely followed crypto analyst says a major sell-off for altcoins is on the horizon, but notes that leading smart contract platform Ethereum (ETH) may be safe.
In a new strategy session, DataDash presents Nicholas Merten tells are 511,000 YouTube subscribers that altcoins appear poised for an ongoing corrective move.
“Not only do altcoins look like they’re poised for a further pullback right now, we’re doing our due diligence, we’re trying to find the projects we’re interested in, but at the same time, I’m going to be honest with you guys, I see the market continuing to correct.”
Looking at Binance Coin (BNB), crypto exchange Binance’s native token and currently the fifth-ranked digital asset, Merten says the price action could reveal what’s next for the altcoin market at large.
According to the crypto trader, BNB could witness a deep correction if it fails to hold the $30 billion level in terms of market cap.
“We are now basically trying to establish that Binance [Coin], whether BNB, has broken this long-term trendline it has held since 2017, how low can it go? Can it stay around $30 billion here? Because if it can’t, if it breaks through that level, we’re going into no man’s land.”
At the time of writing, BNB’s market cap is $37.6 billion.
While Merten is cautious about altcoins, he says Ethereum could be swimming against the current.
“Of all the cryptocurrencies out there, one that stands out and at least looks more bullish is the Ethereum price pattern. In the past more than a year, it has built an ascending triangle. This is a bullish pattern where you have a flat resistance range, rising lows that line up, compress and roll up in price, usually to bounce upwards.
However, I want to make it clear that there is no guarantee for that, as with all technical patterns, we just work with what we have.
Ethereum is trading at USD 1,883 at the time of writing, a fractional drop in the past 24 hours.
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