Trader Raises Alarm About ‘Scary’ Behavior in Chainlink (LINK) and Other Altcoins: Is it the End?
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Trader Raises Alarm About ‘Scary’ Behavior in Chainlink (LINK) and Other Altcoins: Is it the End?

Altcoin Sherpa, a well-known crypto strategist, is cautioning investors about the altcoin market as projects like Chainlink (LINK) experience a correction. With a significant following of 214,900 followers on the social media platform X, Altcoin Sherpa suggests that most altcoins may enter a consolidation phase lasting several months. While there may be outliers, the majority of altcoins need time to cool down and consolidate after a substantial surge.

Chainlink, a provider of decentralized oracle services for smart contracts, serves as an example of other altcoins, according to Altcoin Sherpa. LINK has seen a correction after experiencing gains of 4x following a lengthy accumulation phase. Altcoin Sherpa points out that many altcoins did not experience significant price increases in recent months. For instance, LINK went through a 500-plus day accumulation period and only achieved a 3x-4x gain (depending on the entry point), but now its price is significantly pulling back.

As of now, LINK is trading at $13.21, representing a decrease of over 1% in the last 24 hours.

Altcoin Sherpa believes that only specific sectors within the crypto market will perform well in the coming months. These sectors include well-established projects like Ethereum (ETH) and Solana (SOL). Additionally, the analyst expects strength from artificial intelligence (AI)-related projects, memecoins, and newer projects such as Ethena (ENA) and Wormhole (W), a cross-chain messaging protocol. ENA is a governance token launched by Ethena Labs for their decentralized finance protocol.

Altcoin Sherpa highlights that liquidity in the market has become fragmented, with only a few sectors experiencing significant price increases. The analyst focuses primarily on four sectors: memes, the move towards real value (highlighting ETH and SOL), big token launches like ENA, and AI-related projects.

At present, ENA is trading at $0.9311, while W is trading at $0.5697.

It’s important to note that the opinions expressed by Altcoin Sherpa are not investment advice. Investors should conduct their own research before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. The Daily Hodl, where this information originates, does not recommend buying or selling any cryptocurrencies or digital assets, nor is it an investment advisor.

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