Analyst: Ethereum Metaverse Altcoin and Smart Contract Platform Are Set to Rally If Bitcoin ‘Plays Nice’
A popular analyst is advising caution to traders of two crypto assets while predicting rallies for a popular blockchain-based gaming ecosystem and an Ethereum competitor.
Pseudonymous trader Altcoin Sherpa tells his 170,500 Twitter followers that he’s wary of the risk/reward ratio (R:R) for ApeCoin (APE), a new crypto asset that quickly surpassed $2 billion in market cap, created by the founders of the Bored Ape Yacht Club (BAYC).
“Bullish market structure on lower time frames still intact; I personally would be careful with this one as I don’t think the R:R is that great for a trade.
Investment-wise, it’s also [very] high valuation [in my opinion]. That said, I would consider buying a dip.”
ApeCoin launched on March 17th with a valuation of $7.40, surging 132% to as high as $17.17 the following day before correcting. APE is currently down 5.81% and priced at $12.43.
Altcoin Sherpa is also wary of enterprise-grade blockchain platform Fantom (FTM). He follows up on a March 19th tweet where he advised investors to reduce their risk because he doesn’t think there will be a “full-on” altseason or a period when altcoins significantly outperform Bitcoin (BTC).
“Again friendly reminder for you to take some off the table for your altcoins.
Your $2.70 FTM buy is probably not going to get to that level, take the L on this next move up.”
At time of writing, Fantom is up over 1.34% and trading for $1.34. FTM last touched $2.50 on January 21st.
The pseudonymous trader next looks at Ethereum-based virtual world The Sandbox (SAND). He says its price action looks similar to fellow metaverse game Axie Infinity (AXS).
“Kind of looks like AXS before it mooned. You’ll probably want to consider buying some metaverse stuff if AXS starts to pump hard; I think that these laggards will also do really well.”
The Sandbox is down 2.15% to $3.37 at time of writing.
The crypto strategist is also optimistic about scaling solution protocol Near (NEAR) being able to surpass $16 if BTC also rises.
“I think that we go to $16 or higher in the coming weeks as long as BTC plays nice.
This has chopped for 2 months, I think it expands soon.”
Near is currently down 4.94% and valued at $12.21.
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