Analyst says altcoins will rally hard in 2022
Analyst Nicholas Merten says altcoins are ready to rally, with Aave, Uniswap and Yearn.Finance his top picks.
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.”
The analyst says in a YouTube session that historically, Bitcoin has been the leading indicator for altcoins. 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 notes that Bitcoin remains in largely uncertain territory, even as the market registers more and more interest in various 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.
Decentralised finance (DeFi) and Metaverse coins are two fast-paced sectors today, and here is where the analyst picks the four altcoins with the potential to skyrocket.
Aave (AAVE), Uniswap (UNI), Yearn.Finance (YFI) and Radix (XRD)
Among altcoins, the analyst is keen on are DeFi’s Aave, Uniswap, and Yearn.Finance. Also on the table is layer-1 protocol Radix.
Merten sees Aave price registering a major breakout to add to its stellar performance against Bitcoin. Currently, the AAVE/BTC pair is capped within a range supported at lows of 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.
As for Uniswap (UNI), the analyst predicts another breakout against BTC, with
Bulls are likely to break above a descending trendline for another 25% or more run against Bitcoin. 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. Although there remains the possibility of a major correction in such coins, the analyst says XRD is picking momentum as bulls prepare for the next major wave.