Widely followed cryptocurrency analyst Nicholas Merten predicts that a major sell-off event for altcoins is imminent. However, Merten emphasizes that the leading crypto project Ethereum (ETH) can be safe. Here are the details.
Cryptocurrency market has gained great interest and popularity in the recent period. Many investors and experts thought that altcoins could experience a massive increase in value. Following the legal victory of XRP, various altcoin projects have been on the rise in the market, attracting attention. However, this rise was not sustainable.
According to DataDash host Nicholas Merten, altcoins seem poised for a sustained correction.
“Altcoins seem to be poised for a sustained pullback right now. We’re doing due diligence, trying to find projects we’re interested in but at the same time, I’ll be honest with you, I predict the market will continue to correct.”
Merten delves deeper into an altcoin to find out what’s next for the altcoin market as a whole. This altcoin that Merter has on his radar; The native token of crypto exchange Binance and currently the fifth-ranked digital asset, Binance Coin. According to the trader, BNB could witness a deep correction if it fails to hold the $30 billion mark in terms of market cap.
“Basically Binance [Coin] or broke this long-term trendline that BNB has maintained since 2017, so how bad can things get? Can it stay here for about $30 billion? Because if he can’t, if he breaks that level, we’re going into very dangerous territory.”
At press time, BNB has a market cap of around $37.6 billion. Although Merten is cautious about altcoins, he claims that the leading altcoin Ethereum can withstand this decline.
“Of all cryptocurrencies, it is only Ethereum’s price pattern that stands out, which seems to me at least more bullish.
Over the past year or so, it has been constructing an ascending triangle. This is a bullish pattern where you have a flat range of resistance, lows higher than the previous one, squeeze and wrap the price, usually bouncing up. However, I would like to make it clear that, as with all technical models, this is not a guarantee.”
You can follow the current price action here.