A crypto strategist known for accurately calling the 2021 digital asset cycle top believes that altcoins are poised to witness a bounce.
The analyst pseudonymously known as Pentoshi tells his 854,200 followers on the social media platform X that he’s accumulating crypto assets believing that the altcoin market is gearing up for a recovery.
He says he’s keeping a close watch on the OTHERS chart, which tracks the total market cap of crypto excluding the 10 largest digital assets and stablecoins.
“It’s kinda hard for me to be bearish in this range. We can still fill it out more of course and it can chop around. I spoke a lot about taking out money as the bull run progressed and have begun to deploy some of that capital short term.”
Looking at the trader’s chart, he seems to predict that OTHERS, which some traders refer to as the altcoin index, can still drop to its immediate support at $247 billion before rallying close to $280 billion.
At time of writing, OTHERS is worth $270.195 billion.
One altcoin on his radar is the layer-1 protocol Injective (INJ). The trader says INJ appears to be setting up for a bounce as it respects its support at around $14.
“This area should give a pretty nice reaction in the near future. Also one of the better-performing coins from the 2023 lows.”
At time of writing, INJ is worth $14.67, up nearly 9% on the day.
Pentoshi also says he is optimistic about the future of crypto assets except for celebrity-themed memecoins.
“I still think we have a super bright future. A golden era will return. Stablecoins being the number one use case for crypto will still grow exponentially with downstream effects. Not just for speculation either. Bitcoin is 100% now cemented into the future where it will be a global standard. Back then it wasn’t so certain, especially in 2018. We’ll see a lot of the real world come on-chain with life-changing opportunities for those who reach out and grasp it.
I might be bearish on the impact of celeb meme coins for example. I mean. Look at the state of the market while Bitcoin is at $100,000. But not bearish on the overall direction. These things work themselves out.”
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Follow us on X, Facebook and Telegram
Generated Image: Midjourney
Read the full article here