A crypto trader is issuing a warning on a low-cap altcoin that has enjoyed triple-digit price appreciation in a month.
Pseudonymous crypto analyst Altcoin Sherpa tells his 196,900 followers on the X social media platform that the decentralized applications (DApps) platform Loom Network (LOOM) is “on the way down” after experiencing “fast bull moves” over the past 30 days.
-->LOOM rose from its September 19th close of $0.0462 to a five-year high of $0.407 earlier this week.
According to Altcoin Sherpa, LOOM could rise modestly over the short term before resuming the downtrend and inflicting “more pain” as it lacks “any support.”
Source: Altcoin Sherpa/XLOOM is trading at trading at $0.179 at time of writing, up by around 287 from its September 19th price of $0.0462.
Turning to Bitcoin, Altcoin Sherpa says that he is bullish on the flagship crypto asset over the short term.
“BTC: I think that this is going to go higher and fill out this inefficiency (price rising drastically and falling just as fast resulting in long candles and wicks). $30,200 is a one-million-dollar level. Funding negative, you know what that means…
I still have zero clarity on where BTC is going in the midterm.”
Source: Altcoin Sherpa/XA negative funding rate means there are more short positions than long positions on Bitcoin, which some traders perceive to be a bullish indicator.
BTC is worth $28,420 at time of writing.
