Crypto analyst Nicholas Merten says he believes a new altcoin season has officially arrived.
On the latest episode of DataDash, Merten says that for the first time in two-and-a-half years, the collective altcoin market has broken through a key line of resistance against Bitcoin (BTC).
“We’ve obviously had a breakout here and the momentum has been building up here. We talked about this for the last few weeks to watch out for this and we finally have gotten it... For this to continue climbing, what are we really going to need here? Is it going to be a lot of small-cap plays?
I think very much so. I think the small-caps and the mid-caps... For the ones that are very valuable from more larger mid-caps like Chainlink as well as down to the small-caps in the DeFi space… I think that they’re really going to lead the way, and, you know, obviously gain some of this market dominance in the long term.”
Merten adds that large-cap cryptocurrencies must continue to move forward and keep the overall altcoin market bullish.
“In the short term, we need to start seeing some of the large-caps move. I’m talking about Etherium, Litecoin –some of these larger, more established cryptocurrencies, to really solidify the breakout…
The monthly [chart] has been signaling this since back here in September when ETH set its last low.”
Merten is particularly bullish on iExec (RLC), Chainlink (LINK), Cosmos (ATOM), and REN, but he thinks that Cardano (ADA) is headed for a pullback after sustaining a huge rally from about 2 cents in March to a high of 13 cents on Tuesday.
“We can see here that in the short term ADA is a little bit overextended. It’s had a great rally here so it might be time for it to play a little bit of catch-up.”