Trader Cautions of Bearish Signal in Ethereum’s Main Competitor, Suggests Metaverse Altcoin Poised for Upward Momentum

Cryptocurrency analyst and trader Ali Martinez is issuing a cautionary note regarding a potential downturn in Polkadot (DOT), a prominent Ethereum (ETH) competitor. Martinez, who communicates his insights to a sizable audience of 37,500 followers on the social media platform X, suggests that Polkadot might experience a decline exceeding 20% from its current value.

Highlighting the Tom DeMark (TD) Sequential indicator, a tool designed to identify market turning points with a value of nine indicating a potential correction, Martinez points out a bearish reading for DOT. The TD Sequential indicator signals a sell on the weekly chart for Polkadot just as it encounters a significant resistance level at the 100-EMA (exponential moving average). This situation could trigger profit-taking, potentially driving DOT down to $7.50.

As of the latest update, Polkadot is trading at $9.42, reflecting a 7.47% increase in the last 24 hours.

Shifting focus, Martinez also suggests a potential market bottom for The Sandbox (SAND), a decentralized virtual world. Indicating that The Sandbox may be entering the ‘depression’ phase, a pivotal point in the typical market psychology cycle, Martinez hints that this could be an opportune moment for investors to consider acquiring SAND, anticipating a future upswing.

At the time of writing, The Sandbox is trading at $0.668, showing a notable 16.49% increase in the last 24 hours.

Lastly, Martinez points out heightened interest from deep-pocketed investors in Litecoin (LTC), a peer-to-peer payments network. Over the past week, Litecoin whales have accumulated approximately 42,000 LTC, equivalent to around $3 million.

Litecoin is currently trading at $72.25, reflecting a 1.57% increase in the last 24 hours. This influx of interest from significant investors suggests a potential positive trend for Litecoin in the near term.