A closely followed crypto analyst says XRP could be nearing the end of a long accumulation before a big breakout, and that rallies could also be in store for two more altcoins.
The pseudonymous analyst known as Altcoin Sherpa tells his 148,000 followers that XRP may be a difficult trade in the short term. However, he says that when the crypto markets start to favor altcoins, XRP could be one of the stronger moving coins.
“XRP: This actually doesn’t look bad. These candles are low volatility, looks a bit like accumulation. Not a great active trade in my opinion but 1 to watch. Note: When alts start to really pop off (or BTC), I think this could be really strong to buy. Retail loves cheap coins.”
Based on Sherpa’s chart, XRP may enter price discovery mode after it breaks and holds the resistance level of $1.31.
Besides XRP, the analyst is also looking at liquidity platform Woo Network (WOO), a project that is up nearly 50% in the last week. The trader uses the Fibonacci extension tool to predict a local top for WOO at $2.08, approximately 20% away from its current price of $1.72.
“WOO: Send this to $2 plz!! Great project!”
The third altcoin the analyst is keeping an eye on is DAO Maker (DAO), a project that aims to create a platform for retail venture investing in equity and tokens. DAO is already up 36% in the last week.
According to Altcoin Sherpa, DAO is facing a resistance that if broken, could take the crypto up to $6.20, which would be a further 55% gain.
“I will continue to hold (hold on for dear life) for a while- next resistance up is $5ish.”
Also on the analyst’s radar is Binance coin (BNB), the utility token on Binance, the world’s largest crypto exchange. The Sherpa says he’s watching BNB in its Bitcoin pair (BNB/BTC) as a signal for what could occur in the near future.
“BNB: Waiting for the breakout on the BTC pair, both look decent (but the USD is near all-time highs, always a dangerous place). I’m still expecting some sort of reaction with that pair.”
Earlier this month, the analyst accurately predicted that BNB would climb its way up into the $600s. At time of writing, BNB is changing hands at $639.
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Featured Image: Shutterstock/Lidi Di/Natalia Siiatovskaia