A popular cryptocurrency trader believes that one mid-cap altcoin project is showing high growth potential.
Pseudonymous crypto analyst Altcoin Sherpa tells his 196,400 followers on the social media platform X that decentralized derivatives exchange Injective (INJ) is forming a bullish pattern.
“INJ: high timeframe higher low [price] is here. This looks very healthy.
I think this is one of the few where you’ll be able to blindly buy dips for in the coming weeks.”
Looking at his chart, the trader seems to think that INJ is in an uptrend and can eventually retest the resistance level at $9.88 first and then $14.
Injective is trading for $7.50 at time of writing, up 3.3% in the last 24 hours.
The trader also weighs in on Bitcoin (BTC) and Ethereum (ETH), predicting the largest crypto assets will likely soon see a significant upswing based on a historical pattern.
“Seasonality is really important to look for in crypto. BTC and ETH traditionally do extremely well sometime in Q4 or Q1 the following year.
It makes sense, people sell their stuff in December and then rebuy it in January. This happens even in the worst bear markets.”
Looking at his chart, the trader identifies the times when he believes BTC followed the seasonal sell-off and rally pattern with the last two surges occurring in late 2022 and early 2023.
Bitcoin is trading for $26,904 at time of writing, down 0.7% in the last 24 hours.
The trader is also looking at the seasonality of Ethereum, predicting an ETH rally in the coming months.
“ETH is really pronounced as well. Sometimes the rally comes in December, sometimes in January…sometimes in November.
But usually, it’s a strong rally that lasts about one month and we get some mini altcoin runs during those times. I’ll be longing hard in November personally.”
Ethereum is trading for $1,666 at time of writing, up 0.5% in the last 24 hours.
Lastly, the trader says Solana is retesting a key resistance level but it remains unclear if SOL will succeed in flipping it into support.
“SOL: not a great spot to buy here in my opinion, [retesting] the 200-day EMA (exponential moving average) on the 4-hour [chart], but I think it’s going to be really interesting to see where the next high is set. Could be a market structure shift if we get a higher high on the 4-hour [chart]. Watching but not excited yet.”
Based on his chart, the trader seems to think a bullish scenario would send SOL to the $21 range before a dip, while his bearish scenario has SOL revisiting the low $17 range.
Solana is trading for $20.24 at time of writing, up 2.7% in the last 24 hours.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxGenerated Image: Midjourney