Popular analyst Nicholas Merten, who is closely followed by the cryptocurrency market, warned investors about a major altcoin cleanup that could happen soon! These altcoin projects may be flooded anytime soon! Here are the details…
The famous analyst warned about the altcoin market: “Market values may decrease!”
cryptocoin.com Nicholas Merten, the leading cryptocurrency analyst, whose analysis we have previously quoted, recently made a statement to 511 thousand YouTube subscribers; He says that the altcoin market currently lacks a new catalyst to attract more liquidity, laying the groundwork for a drop from its current peak. However, the analyst predicts that as the meme coin PEPE declines, the altcoin market cap will also decrease significantly. Here are the words of the leading analyst:
There is not much progress at the moment. We’re nowhere near what we need for a bull market. I was there during the last bear market in 2018 and 2019 and I can tell you there was DeFi, NFTs were resurgent. In fact, there were many fundamental things that justified the arrival of new liquidity.
Popular analyst on the subject Merten examined the movements of Optimism (OP), Arbitrum (ARB) and Polygon (MATIC) as an example of his predictions that the altcoin market will continue to bleed liquidity.
For example, we see that Optimism, one of the major layer-2 scaling solutions, has dropped from $1.90 to $1.53. Arbitrum dropped to around $1.20 after hitting a high of around $1.80 the previous day.
Let’s look at MATIC.. It’s down almost 50% since its February high, which was one of the signs that we are not in a new bull market, essentially a game where market makers are increasing the order book with weak liquidity.
The analyst explained: “Constantly experiencing new declines for PEPE could be a bad sign for the industry!”
Popular cryptocurrency analyst Merten cites the continued decline of PEPE as an example of the altcoin market weakening. As you know, PEPE has been seeing constant lows for the past few days, and according to the expert, this is a very bad sign for the industry. However, according to the expert name, speculation does not give good results in contraction environments.
On the other hand, Merten turned to the TOTAL2 Index, which reveals the total market cap of all cryptos except Bitcoin. Once TOTAL2 reaches its diagonal resistance, it’s probably on its way to reaching the lows of the range, Merten says. The analyst’s words on the subject are as follows:
Crypto markets are not yet ready to rise. TOTAL2 fell 15% in less than a month. It just looks like an expanding channel to me, and if the highs are expanding, that means the lows are expanding as well. So where does this take us? With a market cap of around $430 billion for altcoins, it takes it back to previous lows. At the point where we are now, we are at the level of 560 billion dollars.
