As the altcoin market value exceeds $276 billion, driven by Bitcoin’s surge above $66,000, investors are eyeing altcoins for gains. Crypto analyst CryptoBulle warns against blindly investing in all altcoins despite the bullish trend, noting the market’s susceptibility to corrections.
CryptoBulle advises caution with altcoins between Fibonacci levels 0.382 and 0.236. Filecoin’s daily chart shows significant volatility, dropping 30% in the past week. Cardano faces a bearish trend, with ADA trading at $0.48, down 25% in five months.
CryptoBulle’s Warning on Altcoins
CryptoBulle suggests that altcoins still between the 0.382 and 0.236 Fibonacci levels are unlikely to break their 2021 all-time highs.
“Draw the Fibs from top to bottom. The ones still between 0.382-0.236 likely won’t make it above their 2021 highs,” CryptoBulle tweeted, highlighting weak coins in this category.
Altcoins to Watch: Potential Struggles Ahead
Polkadot ($DOT): Despite its robust ecosystem and innovative technology, Polkadot’s current Fibonacci levels suggest it may struggle to reach its previous all-time high.
Filecoin (FIL): Offering a decentralized storage solution, Filecoin’s market shows significant volatility on the daily chart. It has emerged as one of the biggest losers in the market, having dropped 30% in the past week.
Axie Infinity (AXS): Known for its play-to-earn model, Axie Infinity has experienced substantial growth. However, its current position suggests potential challenges in reaching new highs. AXS is currently trading at $7.3 with a market cap of $1 billion.
Cardano (ADA): A popular Proof-of-Stake blockchain, Cardano has recently been facing a bearish trend. As of early May 2024, ADA’s price hovered around $0.48, reflecting a 25% decline over the past five months. Analysts suggest that ADA might either break down further or continue moving sideways.
Altcoins at Risk and Potential Investment Opportunities
At-Risk Altcoins: These altcoins are at risk of further price drops and may not offer a profitable entry point for investors at this time. CryptoBulle’s analysis underscores the importance of strategic investment decisions based on technical indicators like Fibonacci retracement levels.
Promising Altcoins: On the flip side, CryptoBulle has identified four top altcoins that should be included in your investment portfolio. These altcoins have the potential to break their all-time highs in the upcoming altcoin season.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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