Altcoin Breakout Imminent, Says Analyst Nicholas Merten: Here’s the Sector To Watch
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A popular crypto analyst says that altcoins are primed to surge and he’s eyeing one key sector that could see the biggest gains.
In a new strategy session, Nicholas Merten tells his 489,000 YouTube subscribers that although Bitcoin (BTC) looks somewhat stagnant, money isn’t moving out of the markets completely but instead shifting into altcoins. He’s particularly interested in seeing how much the decentralized finance (DeFi) sector can break out to the upside.
First on his radar for 2022 is the automated Ethereum-based crypto exchange Uniswap, and he looks at how native token UNI stacks up in its BTC trading pair UNI/BTC.
“One of the plays here that we’ve been big on is UNI. UNI’s basically recovered back to where it was against Bitcoin back here in October of 2021, and with this descending line of resistance [dating back to May of 2021], medium range of support here [0.0003219 BTC], we can see that we not only found support at a very critical level, previous support in the past [October of 2020], resistance in [January 2021].
It started to coil up here towards the resistance point and looks like it’s ready to really pop out higher and start to reclaim against some of these losses and continue moving higher.”
Uniswap is up slightly on the day to $18.71 and has worked its way up from under $15 over the past two weeks.
Bitcoin remains mostly flat during the same time frame, although it did briefly recapture the $50,000 level over the Christmas weekend. BTC is currently trading for $46,795.
The DataDash host is also interested in fellow decentralized finance (DeFi) platform Aave (AAVE).
“What’s really exciting is if we take a look at AAVE as well. AAVE has been making some serious moves. About 70% here over the past couple of weeks.
We’ve come up here from around 346,000 satoshis, now pressing up close towards around 600,000 satoshis, around 580,000 at the moment.
Some pretty big breakouts against Bitcoin bringing it back to levels again not seen since as early as October of 2021, making up months of losses.
This is kind of the early sign of a further breakout to come for the general sector.”
At time of writing, AAVE is up 2.47% on the day to $270.26.
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