As Bitcoin (BTC) consolidates below the $30,000 mark, the focus in the cryptocurrency market has shifted to alternative coins or altcoins. In this line, crypto trading expert Michaël van de Poppe has highlighted this trend, noting that several altcoins are showing signs of breaking out and gaining traction.
In a YouTube video posted on May 6, the recognized investor suggested that the current crypto market run may be approaching its end stage, as indicated by the continuous upward trend in the Bitcoin dominance chart. He predicts that if Bitcoin breaks $30,000, its dominance will increase until it consolidates, and money will then flow to Ethereum (ETH) and other altcoins. He, therefore, identified the following three coins to watch out for as attention turns to altcoins.
The meme coin has been gaining traction in recent weeks, with the analyst pointing out that the token still has some upside in the coming days ‘until proven otherwise.’ He observed that if the price of Pepe remained stable or increased slightly, it would be a bounce play. Conversely, if a bearish divergence followed a significant upward trend, it would be a short play.
According to Poppe, if the meme coin’s value drops again, it would be another bounce play while acknowledging that these trades were straightforward to execute, as they had been occurring frequently.
However, Poppe cautioned that despite the recent gains, PEPE is not a good investment option, but it has potential for trading purposes. By press time, the meme coin was trading at $0.0000029 with weekly gains of over 500%.
As per Poppe’s analysis, there is still potential for Chainlink (LINK) to rally in the coming days stating that it is in the accumulation phase. He pointed out that the LINK May 2022 bottom of about $6.5 is being retested, and double bottom tests typically trigger a reversal. This indicates that now is the time for investors to accumulate their positions in Chainlink. He noted that at the current valuation, Chainlink is underperforming.
Notably, LINK has, in recent weeks, recorded mixed price movement despite increased network activity. Currently, LINK is trading at $6.92.
While Ethereum (ETH) saw a surge in value during the hype leading up to the Merge upgrade, it subsequently underwent a correction following the Shanghai upgrade. In this line, Poppe views the movement as a downward trend, as indicated by lower highs and lows.
According to the analyst, if Bitcoin breaks out to the upside, Ether is likely to be tested, but this would have little impact on its value against USDT. If Bitcoin crashes, Ether will remain stable, but a volatile move to the upside for Bitcoin could lead to a fall in Ethereum’s value against BTC.
Poppe advised that investors should watch for a break out of Ether against Bitcoin above the previous lower high, which could trigger an expansion and cause other coins to follow suit. At the moment, Ethereum is trading at $1,874.
Looking ahead, Ethereum’s prospects appear bright, particularly in light of the network’s transition to the energy-efficient, proof-of-stake (PoS) protocol. For instance, Finbold consulted the chat-based artificial intelligence (AI) platform ChatGPT regarding Ethereum’s potential price movement in 2025. The tool projected a trading range for the digital asset between $4,000 and $10,000, underscoring a bullish outlook for Ethereum’s future performance.
Despite the highlighted cryptocurrencies showing potential for a breakout, their ability to rally largely depends on the general market price movement.
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