Crypto Strategist Warns About Altcoin Market Correction: Chainlink (LINK) and Others May Enter Consolidation Phase

The altcoin market is facing a potential downturn, according to a prominent crypto strategist. Altcoin Sherpa, a well-known analyst with a large following on social media, is warning investors about a possible consolidation phase for many altcoins, including popular projects like Chainlink (LINK).

Altcoin Sherpa, who has over 214,900 followers on X, recently shared his concerns about the altcoin market. He believes that most altcoins may enter a months-long consolidation phase, with only a few outliers performing well. Chainlink, in particular, is currently correcting after experiencing significant gains in recent months.

The analyst pointed out that despite a lengthy accumulation phase, Chainlink only saw a 3x-4x gain before experiencing a pullback. This trend is indicative of the broader altcoin market, according to Altcoin Sherpa.

At the time of writing, Chainlink is trading at $13.21, down more than 1% in the last 24 hours. Altcoin Sherpa suggests that in the coming months, only specific sectors of the crypto market, such as well-established projects like Ethereum (ETH) and Solana (SOL), will perform well.

Additionally, the analyst expects strength from AI-related projects, memecoins, and newer projects like Ethena (ENA) and Wormhole (W). ENA is currently trading at $0.9311, while W is at $0.5697.

Investors are advised to do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. The Daily Hodl, where Altcoin Sherpa’s insights were shared, does not provide investment advice and recommends caution when trading in the volatile crypto market.