- Analyst Nicholas Merten claims altcoins are poised to rally, with Aave and Uniswap. Yearn is his top pick.
DataDash host and popular crypto analyst Nicholas Merten says he is extremely bullish on cryptocurrency going into 2022, noting specifically that he’s betting on the altcoin market as it hits the so-called “supercycle.”
According to the analyst, YouTubeHe explains that Bitcoin is the most important indicator of altcoins historically. He points out that altcoins have rallied to mirror the flagship cryptocurrency’s macro price movement, and likewise declined whenever sell-off pressure decimates the Bitcoin market.
Merten says while Bitcoin remains the benchmark crypto, there’s a change in market dynamics that are beginning to show altcoins trend more and more independently of BTC price action.
He points out that Bitcoin remains in an uncertain area, even though the market is becoming more interested in other altcoins. With some coins outpacing Bitcoin during the latest correction, the strategist says it’s not just the major coins like Ethereum and Solana that need a second look ahead of the next rally.
The fast-paced Decentralised finance (DeFi), as well as Metaverse coins, are two sectors that are very active today. Here’s where the analyst chooses the four altcoins which have the potential for skyrocketing.
Aave (AAVE), Uniswap(UNI), Yearn.Finances (YFI), and Radix (XRD).
Among altcoins, the analyst is keen on are DeFi’s Aave, Uniswap, and Yearn.Finance. Radix, a layer-1 protocol, is also on the table.
Merten expects Aave to register a major breakout, adding to its outstanding performance against Bitcoin. At the moment, AAVE/BTC is supported at 0.005727 BTC.
“If we can clear through this range, that’s going to set the foundation for AAVE to probably have another seismic rally,” he said.
Uniswap, (UNI) analyst: Another breakout against Bitcoin.
For another 25% or so run against Bitcoin, the bulls will break above a declining trendline. He says the automated market maker’s recent launch on Polygon adds to the strong fundamental outlook of UNI.
Yearn.Finance is also on the analyst’s radar, a fair-launch DeFi protocol whose governance token YFI has surged over 62% in less than two weeks.
There’s also Radix (XRD), an “early stage” layer-1 protocol that breaks out whenever other projects move higher. The analyst believes that XRD is gaining momentum as bulls prepare to ride the next major wave.