A popular crypto analyst is eyeing breakouts for altcoins that compete with leading smart contract platform Ethereum (ETH).
The pseudonymous trader known as Altcoin Sherpa tells his 169,500 Twitter followers that he expects big things from Cosmos (ATOM), an ecosystem of blockchains designed for both scalability and interoperability.
The trader says he’s impressed by the project’s Inter-Blockchain Communication protocol (IBC), which went live in April of last year, and expects ATOM to be one of the top performers of 2022.
“I am probably late to the show on this, but I think that Cosmos is going to have a really big 2022.
There’s a lot of interesting stuff being built and there’s a lot to be said about IBC in the future. I think this is definitely one to watch going forward.”
Sherpa concludes his ATOM discussion by offering a word of caution about what might happen if top crypto Bitcoin (BTC) were to fall in price dramatically.
“[Technical analysis] wise, I think that the trend looks decent on lower time frames, we are seeing the EMAs [exponential moving averages] swing bullish.
The EQ of the range is also holding for now, but if BTC s**ts the bed, it’s going back to the range lows.”
At time of writing, Cosmos is up 3.03% and trading for $32.67. ATOM is up an impressive 45.7% since the overall crypto markets flash crashed back on February 24th.
Moving on to smart contract platform Terra (LUNA), Altcoin Sherpa is watching for an entry point at the $77 level should the altcoin’s price correct again.
“LUNA is a good coin to long at $77 for several reasons: coins like this are going to be bought up the fastest in these environments.
They also have incredible upside when close to all time high levels (price discovery).”
Terra is currently riding a wave of positive momentum which has seen its valuation rise 23.1% from $73.66 to $90.73 throughout the week, including a 2.33% gain today.
The pseudonymous trader wraps up his crypto coverage by plotting out where he thinks Bitcoin is headed.
Sherpa says BTC looks like it’s in a good position to go long.
“High time frame [is] still bearish but if you’re using EMAs, this is an area of support on lower time frames.
Lots of confluence with several EMAs on the 4 hour – I think this is a decent area to long personally.”
Bitcoin has somewhat corrected over the past several days after ripping vertically from the $38,000 level past $44,000 at the start of the week.
BTC is down 3.75% at time of writing and is exchanging hands at $40,815.
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