nickthomas2@benzinga.com
3 min read
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This week brought a wave of momentum across the altcoin market, with the total altcoin market cap—including Ethereum—surging over 17% at one point. Although some gains were trimmed after hours on Friday, the market remains up 14% on the week and is currently trading around $1.16 trillion.
This resurgence in altcoins was fueled not only by Bitcoin's continued strength near its all-time highs but also by growing optimism surrounding global trade deals, including the recently discussed agreement between the U.S. and the U.K.
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Among the top performers was Chainlink, which has shown notable recovery from its April lows. Having been covered back in mid-April, LINK has since gained over 60% and surged more than 20% over the past two days alone before pulling back slightly. As of now, LINK remains up approximately 16% in that two-day window.
Chainlink's current price action continues to signal bullish intent:
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Weekly Chart: LINK is testing a prior high at $15.989 and currently holding above it, which could confirm a significant structure shift if the level holds into next week.
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Daily Chart: Structure remains bullish with a pattern of higher highs and higher lows still intact.
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Trend Momentum: While the near-term momentum is strong, the recent after-hours pullback mirrors similar moves across the broader altcoin market.
Despite the impressive performance, investors should resist the temptation to FOMO into the altcoin frenzy. While rallies of this magnitude can spark enthusiasm, it’s important to remember:
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Many altcoins remain down 50%-70% from their all-time highs.
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Bitcoin's proximity to its ATH increases the likelihood of a retracement, which could drag alts lower.
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Chasing green candles rarely leads to sustainable long-term results.
Instead of focusing on percentage moves over short timeframes, zooming out offers better context. Often, price retracements create more optimal entry points that better align with an investor's risk profile and long-term goals.
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A common pitfall in altcoin investing is chasing daily percentage gains without assessing a project's actual value. The recent rally has lifted even questionable altcoins by 20-30% in a single day, but many of these tokens lack meaningful fundamentals or real-world application.
