Altcoins
See his top picks, including XRP and more
The famous analyst Lark Davis took to his latest video and said that Bitcoin holders may not be ready for what is coming. Looking at the charts, Bitcoin is showing strong signs of reaccumulation. According to him, Bitcoin, which is currently hovering around $68,000, recently had a breakout and is targeting $72,000 as the next critical resistance level. A break above this could push Bitcoin towards $90,000-$100,000 in the coming months.
There was also a massive inflow of nearly $10 billion into U.S. small-cap equity funds, the second-largest weekly inflow on record. This inflow indicates a strong risk sentiment in the broader financial markets, which often correlates with bullish moves in the cryptocurrency market. Contrary to some views, Davis suggests that rate cuts are more likely than hikes, which could have a positive impact on liquidity and money supply in the market.
Few Altcoins to Watch
Davis also said that the current market offers some opportunities in the altcoin space. He compared the current scenario to 2019, when many altcoins crashed significantly before skyrocketing in value later on.
Despite his past criticism, Davis praised Ripple’s legal battles and their potential impact on XRP’s price. He speculated that a successful outcome could lead to a rally, but questioned XRP’s current utility compared to stablecoins and other blockchain solutions.
Davis is also bullish on Base Layer Two and specific altcoins like Aerodrome, Brett, and Benji. He said these tokens are crucial to gaining visibility in the Base ecosystem, especially since there is no native Base token.
He also said that Ethereum is seeing growing interest with upcoming Ethereum ETFs. A third of all Ethereum is currently locked in staking contracts, creating a dynamic supply constraint. The launch of spot Ethereum ETFs could lead to significant inflows, similar to what was seen with Bitcoin ETFs.
He shared an anecdote about a successful airdrop from the Avalanche ecosystem, which had a positive impact on his 10K wallet challenge. He remains optimistic about Avalanche and its potential in the current cycle.