Analyst Says Three DeFi Altcoins Are Flashing Strength Amid Crypto Pullback, Updates Outlook on Bitcoin
A crypto strategist says he’s keeping a close watch on three decentralized finance (DeFi) altcoins that he believes are showing strength amid the market consolidation.
Pseudonymous analyst Altcoin Sherpa tells his 190,400 Twitter followers that decentralized exchanges DYDX (dYdX), GMX (GMX) and Injective (INJ) are “holding up very well” as the crypto rally takes a breather.
“DYDX, GMX and INJ: red days in a bull environment clarifies a lot which alts are strong, which ones are dumping, etc. Perp dexes aren’t moving in this red day; they’re holding up very well. There is a lot of strength with these.”
At time of writing, DYDX is trading at $3.24, up over 34% in the past day. GMX is worth $59.02 and IN is trading at $3.31, up 2% and 19%, respectively.
As for Bitcoin (BTC), the trader says the king crypto could be following its late 2018 to early 2019 setup. Altcoin Sherpa says that in 2018, Bitcoin rallied hard after a multi-month downtrend.
“[In] 2018 I think we saw very clear signs of a prolonged downtrend, followed by an accumulation cycle, followed by a strong move from $3,000-$14,000.”
He says BTC is currently exhibiting similar behaviors.
“[In] 2023 I think we’re seeing some sort of version of 2018 going into 2019 with this current rally, but everything is on a shortened time cycle. This is true for a few reasons, the primary being that 2022 was a slaughterhouse and didn’t look like 2018.”
The analyst sees Bitcoin rallying to $25,000, adding that he has certain targets as high as $30,000.
At time of writing, Bitcoin is worth $23,131.
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This article was originally reported on The Daily Hodl.