A closely followed trader says that a low-cap altcoin that started August on a high note is likely due for 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) could be gearing up for a big bounce.
YGG, the native asset of the play-to-earn gaming decentralized autonomous organization (DAO), rallied from around $0.18 at the start of the month to a high of $0.75 on August 7th, representing an increase of around 316%.
The altcoin has since given up most of its gains and is trading at $0.33 at time of writing.
The Flow Horse says that he’s bullish on YGG following the correction as he believes the altcoin is potentially setting up for a bounce in an effort to test its previous support as resistance.
“Good morning.
Starting off the day by longing some YGG. If you look at the other coins DWF Labs is market making, they all have the same pattern and are beginning to pump again.
Call it manipulation, but it looks semi-predictable that they want to continue to offload at better prices.”
Looking at the trader’s chart, he appears to predict a rally for YGG toward the $0.532 level, suggesting an increase of over 61% for the altcoin. However, the bounce will likely be short-lived as The Flow Horse’s target represents a bearish lower high setup.
As for the entire asset class, The Flow Horse believes that a crypto bull market is not in sight. He agrees with the idea that crypto will likely not make significant moves to the upside 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
