Prominent pseudonymous trader Altcoin Sherpa has issued a warning regarding three of the top ten cryptocurrencies by market capitalization, offering insights into their current state and potential future movements.
Starting with Binance Coin (BNB), the native token of Binance Smart Chain and a utility token on the Binance crypto exchange, Altcoin Sherpa expresses caution, stating that BNB is “hanging on for dear life.” The trader advises staying away from BNB in the short term due to the uncertainty surrounding its performance.
The analysis suggests that BNB, the fourth-largest crypto asset by market cap, lacks upward momentum, having failed to breach the resistance level at approximately $330 on six occasions since May 2022. Altcoin Sherpa’s chart indicates that BNB has broken below a two-month-long trading range, with the next support level located over 10% below its current price. At the time of writing, BNB is trading at $210.
Shifting focus to Bitcoin (BTC), Altcoin Sherpa offers a more bullish perspective in the near term. The trader believes that BTC has the potential to reach $28,000 overall. Altcoin Sherpa points to positive indicators, such as the four-hour exponential moving averages, which suggest that BTC is not overextended and may experience another upward push. As of the time of writing, Bitcoin is trading at $26,717.
When it comes to Ethereum (ETH), Altcoin Sherpa highlights the significance of ETH’s price performance against Bitcoin in determining the future behavior of altcoins. The trader anticipates a potential altcoin rally by the end of the year, expecting ETH/BTC to decline slightly before initiating a substantial altcoin run.
Altcoin Sherpa’s insights provide valuable perspectives on the current state of the cryptocurrency market, highlighting both concerns and opportunities for traders and investors alike. As market dynamics continue to evolve, traders closely monitor the movements of these influential assets.