Altcoins Seems To Complete Their Five-wave Rallies, Issues Alert To Traders

Smart Contracter, a pseudonymous expert, informs that many altcoins have already completed their five-wave rallies.

people aping alts expecting higher where im pretty sure were gearing up to top for a few weeks, especially alts.

5 wave rises on daily literally all over the place, most notably on total3 which is all alts excluding btc and eth.

5% off fees?https://t.co/MLmWabzLxh pic.twitter.com/Fb9mRnjVz6

— Bluntz (@SmartContracter) January 28, 2023

The analyst is referring to the fundamental principle of Elliott Wave theory, a technical analysis approach that attempts to forecast future price movement by observing crowd psychology, which tends to express in waves. According to the idea, after a five-wave advance, a bullish asset is likely to experience a corrective move.

According to the analyst’s chart, the market cap of all cryptocurrencies excluding Ethereum would fall by about 10%, from around $365 billion to $330 billion, indicating a substantial downside risk for crypto assets other than Bitcoin and ETH.

Avalanche, a competitor to Ethereum, is one of the cryptocurrencies on traders’ radar (AVAX). On the eight-hour chart, AVAX has completed a five-wave advance and is likely to correct it to about $15, according to Smart Contracter.

According to Coinmarketcap data, AVAX is up 21% in the last week to $21, bringing the token’s gains in January to 90%. This comes as the value of Bitcoin and Ethereum has surged by almost 44% and 38%, respectively, in the last 30 days. At the time of writing, AVAX is trading for $20.72.

The cryptocurrency strategist is also keeping an eye on the decentralized oracle Chainlink (LINK). LINK has also completed its five-wave surge, according to a chart he provided on Twitter, and is projected to retrace to slightly above $6.

LINK is now trading at $7.023 at the time of writing.

According to Smart Contracter, the same is true for interoperable blockchain Cosmos (ATOM). ATOM, according to the analyst, has completed its five-wave ascent. ATOM is now trading for $13.31 at the time of writing.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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