One of YouTube’s most popular crypto analysts says he thinks the two biggest altcoins by market cap are setting up for a major rally.
On a new episode of DataDash, Nicholas Merten points to a series of higher lows that XRP has posted against Bitcoin since early 2017.
He says the higher lows indicate the digital asset is slowly building strength and support for a big breakout.
“So this to me is extremely significant. Support lines like that, that take into account major bottoms in a given asset, especially in crypto, after having these parabolic runups afterwards, really gets me excited. And we’ve got the multi-week momentum that we saw back here in March.”
Although he sees a “massive breakout” coming, Merten says he thinks it may take a while longer for it to materialize.
“I’m not so certain we’re going to have a breakout just yet. A lot of people are jumping the gun on it. What I want to see is a close, or breakout, on good volume across some of the major exchanges like Binance, etc., over this relative point of resistance in July of 2019…
We know that XRP, taking a look back, is a momentum play. And that really happened both times, when we get the weekly breakout above multiple weeks of sell-side action. Again, in different ways and shapes and forms, you’re going to see a massive breakout.
I think we’re repeating history because back here in March of 2017, this is when we got the first altcoin cycle for 2017. And that’s what we’re doing for the next cycle here. We’re getting our first cycle. We’re not already in the thick of a bull run overall. We haven’t gotten above the previous Bitcoin highs. Altcoins are still in pretty bloody territory. So we’re really looking for a potential value shot here in the market.”
Merten says he believes a similar scenario is playing out with Ethereum after its big crash in January of last year.
“I’m seeing something very similar to XRP. Ethereum, like most altcoins, goes through very severe corrections because they’re still highly speculative. They’re low market cap assets, and Bitcoin alone is already volatile.
So you have here a near 90% correction in Ethereum (since January of 2018). And what we’re seeing here is a very similar trend to what we saw back in 2017, where there seems to be a general resistance mark with the previous resistance area back in July of 2019, similar to what we saw with XRP…
And what I think you’re going to see here is ETH push sideways, have a small bull flag correction and basically start to retest back up to that resistance mark. And once we get a breakout above there, and volume starts to match that, I think that’s where we could really see a lot of optimism come into Ethereum.”
You can check out Merten’s full analysis below.
