A closely followed crypto strategist believes that the altcoin markets may be setting up for a strong surge in the coming weeks.

Pseudonymous analyst Rekt Capital tells his 394,800 followers on the social media platform X that the altcoin hype cycle in Q4 of 2023 was largely driven by the bullish price action of the layer-1 protocol Solana (SOL) and the Ethereum (ETH)-based oracle provider Chainlink (LINK).

With both SOL and LINK witnessing rallies in the past few days, Rekt Capital says the altcoin markets may be gearing up to repeat their strong performance last quarter.

“Both SOL and LINK kickstarted the first wave of altcoin rallies months ago.

They were the top performers in the Q4 altcoin hype cycle of 2023.

Both SOL and LINK are rallying… outperforming yet again.

The market may be gearing up for a Q1 altcoin hype cycle.”

Source: Rekt Capital/X

Rekt Capital is not the only analyst who thinks Chainlink has a profound effect on the crypto markets. Trader Inmortal tells his 206,100 followers on the social media platform X that crypto witnessed rallies in Q4 2023 just after Chainlink broke out of its multi-month accumulation range.

“Marines doing it again. You know what happened the last time LINK pumped? The whole crypto market followed.”

Source: Rekt Capital/X

Analyst Kevin Svenson also echoes the same sentiment.

“LINK started its run before every other top crypto this cycle.

[On Friday] it was showing signs of leading the next run-up once again as usual.

Classic Chainlink.”

At time of writing, LINK is trading for $17.91, up more than 20% since the start of the year. Meanwhile, SOL is worth $98.46, up more than 24% from its January low of $79.

Featured Image: Shutterstock/svetabelaya/WindAwake

The post Altcoin Markets Gearing Up for Q1 Hype Cycle Amid Strong Performance of Ethereum-Based Altcoin, Says Analyst appeared first on Crypto News Australia.

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Filed under: Bitcoin - @ February 5, 2024 1:32 am