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Crypto strategist and trader Nicholas Merten says he’s closely watching six crypto assets in preparation for an incoming altcoin supercycle.
In a new video, Merten tells his 406,000 YouTube subscribers that the next leg of the altcoin boom cycle is primed to erupt in the coming weeks.
“Right now, altcoins are setting up bigtime for a secondary cycle… Going into May of this year, we are going to see the second wave of the existing altcoin cycle that we’re currently living through.”
As altcoins gear up for a potential next phase of the bull cycle, Merten says he’s keeping an eye on some decentralized finance (DeFi) and NFT (non-fungible token) plays which he believes are set to outperform Bitcoin.
The first coin Merten’s got his eye on is decentralized exchange PancakeSwap (CAKE/BTC).
“We can see here that we’ve had a nice 50% correction and three days of green here. In fact, you start to see the buy-side volume returning and starting to outpace some of these days back here… This, to me, looks really interesting, to see volume picking up against purchases with Bitcoin.”
Next up is a project that seeks to bring DeFi into Bitcoin. Merten says Stacks (STX/BTC) is poised for a sizeable rally as it threatens to take out the resistance of (0.000025) after months of sideways action.
The third coin on Merten’s list is decentralized exchange Uniswap (UNI/BTC), which he says is currently laying the groundwork in anticipation for the next big catalyst.
“As we’ve been consolidating here, waiting for the moment to get up here, waiting for the launch of Uniswap v3. It’s going to be coming up probably very, very soon. That’s going to be your inflection point to really press prices higher.”
Coming in at number four is NFT platform Rarible (RARI/BTC). Merten expects the pair to find support and build a base at 0.00035 before it can resume its uptrend.
Taking the fifth spot is blockchain gaming platform Enjin (ENJ/BTC), which the crypto analyst says is in the midst of a pullback after a monster rally.
“What it looks like we’re probably going to get here is again a 50% correction (0.000026) to make support around previous historical resistance. We can see that this was a significant level back here and also was a midpoint here before the secondary wave of the last cycle.”
The last coin on Merten’s radar is Flow (FLOW/BTC), a platform designed for gaming and NFT use cases. The crypto influencer expects FLOW/BTC to drop to support around 0.00041.
“I think we’re going to see this come down towards the range of previous resistance and support, right at a nice clean 50%. It’s all shaping up, guys.”
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