A closely watched trader says a low-cap altcoin that started August at a high is likely to face another round of rallies.
Pseudonymous analyst The Flow Horse, formerly known as Cantering Clark, tells his 180,900 X followers that Yield Guild Games (YGG) is gearing up for a big jump.
YGG, the native asset of the play-to-earn gaming decentralized autonomous organization (DAO), rose from about $0.18 at the start of the month to a high of $0.75 on Aug. 7, up about 316 %.
The altcoin has since given up most of its gains and is trading at $0.33 at the time of writing.
The Flow Horse says he is bullish on YGG after the correction as he believes the altcoin may be heading for a bounce in an effort to test its previous support as resistance.
“Good morning.
Start the day craving some YGG. If you look at the other coins that DWF Labs is marketing, they all have the same pattern and they start pumping again.
Call it manipulation, but it seems half predictable that they want to keep unloading at better prices.”
Looking at the trader’s chart, he appears to be predicting a rally for YGG to the $0.532 level, suggesting an increase of over 61% for the altcoin. However, the bounce is likely to be short lived as The Flow Horse’s target represents a bearish lower high setup.
As for the whole asset class, The Flow Horse believes that a crypto bull market is not in sight. He agrees with the idea that crypto is unlikely to make significant upward moves unless the Federal Reserve cuts rates and regulators approve a Bitcoin (BTC) exchange-traded fund.
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Featured image: Shutterstock/Yurchanka Siarhei/Mingirov Yuriy