A popular cryptocurrency trader, known as Altcoin Sherpa, has identified a mid-cap altcoin project that he believes has high growth potential. In a tweet to his 196,400 followers on the social media platform X, Altcoin Sherpa revealed that decentralized derivatives exchange Injective (INJ) is forming a bullish pattern. He stated that the price of INJ is currently in a high timeframe higher low, which he views as a healthy sign. Altcoin Sherpa further added that INJ is one of the few altcoins where investors can confidently buy dips in the coming weeks.
Altcoin Sherpa’s optimism about INJ’s potential is supported by his analysis of the cryptocurrency’s chart. He suggests that, based on the current uptrend, INJ has the potential to retest the resistance level at $9.88 and potentially reach $14. At the time of writing, INJ is trading at $7.50, representing a 3.3% increase in the last 24 hours.
In addition to INJ, Altcoin Sherpa also shared his predictions for Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies by market capitalization. He emphasized the importance of seasonality in the crypto market, stating that BTC and ETH historically perform well in the fourth quarter of the year or the first quarter of the following year. Altcoin Sherpa explained that this trend is driven by investors selling their assets in December and then rebuying them in January, even during bear markets.
Looking at BTC’s chart, Altcoin Sherpa identified the previous instances when the cryptocurrency followed the seasonal sell-off and rally pattern, with the last two surges occurring in late 2022 and early 2023. As of now, BTC is trading at $26,904, representing a 0.7% decrease in the last 24 hours.
Similarly, Altcoin Sherpa analyzed the seasonality of Ethereum and predicted an ETH rally in the coming months. He noted that the timing of the rally varies, occurring sometimes in December, sometimes in January, and occasionally in November. However, he expects the rally to be strong and last for about one month, potentially leading to mini altcoin runs. At the time of writing, ETH is trading at $1,666, showing a 0.5% increase in the last 24 hours.
Altcoin Sherpa also shared his insights on Solana (SOL), another altcoin project. While he believes that SOL is retesting a key resistance level, he is unsure whether it will succeed in flipping it into support. Altcoin Sherpa pointed out that SOL is currently at the 200-day exponential moving average (EMA) on the 4-hour chart, and he is closely monitoring where the next high will be set. He stated that a higher high on the 4-hour chart could indicate a market structure shift. As of now, SOL is trading at $20.24, reflecting a 2.7% increase in the last 24 hours.
In conclusion, Altcoin Sherpa’s analysis suggests that INJ, BTC, ETH, and SOL present potential opportunities for investors. His bullish outlook on INJ is supported by the cryptocurrency’s current uptrend, and he expects INJ to retest resistance levels and potentially reach new highs. Furthermore, Altcoin Sherpa highlights the historical seasonality patterns of BTC and ETH, predicting significant upswings in the coming months. However, he remains cautious about SOL and is waiting for further market developments to determine its future trajectory. As always, investors are advised to conduct their own research and exercise caution before making investment decisions in the volatile crypto market.