A prominent crypto analyst is cautioning traders about an impending downturn for the vast majority of altcoins. In a recent discussion, pseudonymous analyst Altcoin Sherpa warned his audience of over 255,000 followers on X that he anticipates a significant decline affecting 99% of altcoins. This decrease is expected to be followed by an extended period of consolidation, ultimately leading to a strong upward swing as the market enters December and January.
Sherpa elaborated on his forecast, indicating that while the broader altcoin market may struggle, major cryptocurrencies and those benefiting from digital asset treasury flows should withstand the turbulence relatively well. He predicts that the majority of altcoins will experience ongoing downward movement in the short to mid-term, coupled with a subsequent phase of consolidation.
Despite his bearish outlook on altcoins in the short term, Sherpa remains optimistic about the market’s potential for recovery. He points out that December and January could herald a positive shift for cryptocurrencies. However, he caveats that his predictions would be invalidated if Bitcoin (BTC) were to breach the $120,000 mark decisively and maintain momentum. In such a scenario, he believes the market dynamics would shift dramatically.
Sherpa specifically mentioned that coins which have been in a downtrend for a longer period, such as the meme token Fartcoin (FARTCOIN) and PENGU, associated with the Pudgy Penguins NFT collection, are likely to show resilience and recover quicker than newer assets that have recently surged. He also noted that larger market cap meme tokens might outperform fundamental digital assets due to the favorable conditions they enjoyed earlier in the year.
As it stands, Bitcoin is trading at $111,497, reflecting a 2% decrease over the past 24 hours. This situation underscores the volatility within the cryptocurrency market and the importance for investors to remain vigilant.
Amid these market fluctuations, traders are encouraged to conduct thorough research before making any investment decisions in the cryptocurrency landscape.
