Analyst and trader Michaël van de Poppe says one Solana (SOL)-based altcoin may be gearing up for a breakout.
Van de Poppe tells his 774,000 followers on the social media platform X that the cross-chain messaging protocol Wormhole (W) is showing bullish divergence on the weekly chart.
A bullish divergence, which suggests price will start to increase, occurs when the price of assets records lower lows while indicators, such as the Relative Strength Index (RSI), a momentum oscillator indicator, are witnessing higher lows.
“The altcoins, nothing has changed. On W, there’s still a possibility of a potential bullish divergence and falling wedge breakout in the upcoming weeks. Good things are ahead of us, it might not feel like it, but it will.”
W is trading for $0.1798 at time of writing, up 1.1% in the last 24 hours.
Next up, the trader says Bitcoin (BTC) may be poised for an explosive move.
“PPI (Producer Price Index) coming in [Thursday], another drop towards the lower areas of the range for Bitcoin and then we’re back up? Trend is clearly up for Bitcoin, and the longer the accumulation takes, the heavier the breakout will be…
PPI also coming in hotter and markets barely reacting. Not the prime topic anymore, tariffs, quantitative easing, Trump and China are deciding on whether risk-on or risk-off runs. Yields drop so far. Looking forward to the Bitcoin response.”
Lastly, he suggests that Bitcoin’s current cycle may extend longer than its historic four-year cycles.
“There’s a very likely case that the entire four-year cycle is just something fugazi. The altcoin bull market hasn’t happened, as a matter of fact, the bear market was the longest ever and that should peak in six months from now. No, I think and that’s been my main thesis: longer cycle.”
Bitcoin is trading for $96,496 at time of writing, down 1.3% in the last 24 hours.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Follow us on X, Facebook and Telegram
Generated Image: DALLE3
Read the full article here
