Flow

You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/analyst-highlights-potential-in-ai-altcoins-and-warns-of-correction/" data-wpel-link="internal">Analyst Highlights Potential in AI Altcoins and Warns of Correction</a> 
As the crypto market remains volatile, the closely followed anonymous analyst The Flow Horse has suggested that memecoins and another subsector of crypto, AI altcoins, will outperform other sectors. The analyst also issued a correction warning for altcoins in the current market situation. 
<h2 style="text-align: justify" id="strong-the-flow-horse-points-to-ai-altcoins-strong">The Flow Horse Points to AI Altcoins</h2> 
Known as The Flow Horse, the anonymous crypto analyst mentioned on social media platform X that investors who have made significant gains in memecoins could shift their capital to another subsector, AI altcoins, potentially causing a rally. The analyst also expects the memecoin rally to continue for a while. 
The analyst anticipates that profit-taking from memecoin investments will typically trigger another altcoin rally cycle, surpassing the wealth effect associated with <a href="https://coin-turk.com/vaneckin-dijital-varliklar-baskani-bitcoin-icin-kritik-seviyeyi-ve-beklentisini-acikladi" data-wpel-link="internal">Bitcoin</a> (<a href="https://en.coin-turk.com/expert-analysts-latest-market-predictions-and-bitcoin-outlook/" data-wpel-link="internal">BTC</a>) or <a href="https://en.coin-turk.com/investors-predict-ethereum-price-increase-indicates-deribit-data/" data-wpel-link="internal">Ethereum</a> (ETH). The Flow Horse specifically highlighted AI sector altcoins, emphasizing the importance of a diversified portfolio strategy. 
<h2 style="text-align: justify" id="strong-correction-warning-issued-strong">Correction Warning Issued</h2> 
The Flow Horse’s commentary on the rise of AI and memecoins comes with a cautionary note due to signs of overheating in the crypto market. The analyst pointed to the altcoin funding rate, a metric that tracks fees paid by traders with futures or margin positions, which currently indicates high levels and signals over-leveraged trading positions, suggesting a potential correction. 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter size-full wp-image-323029" src="https://coin-turk.com/wp-content/uploads/2024/03/Altcoin-Fonlama.png" alt="" width="931" height="490"> 
Referring to historical patterns, The Flow Horse recalled instances where altcoin funding reached similar levels before a market correction. The analyst referred to a scenario where the altcoin funding rate doubled after breaking all-time highs (ATH), coinciding with a 20% drop in <a href="https://en.coin-turk.com/us-senators-demand-information-on-secs-hacked-twitter-account/" data-wpel-link="internal">Bitcoin</a>‘s price followed by a decline in altcoin prices. The analyst foresees potential sharp price movements in response to the current narrow trading range and advises investors to adopt a cautious approach. 
The investor’s advice is based on drawing parallels between crypto market dynamics and traditional stock market behavior, suggesting a strategy of staying bullish above ATHs (in this case, Bitcoin’s) and adopting a defensive stance below them. This approach reflects a broader sense of caution amidst market uncertainty, highlighting the importance of risk management and strategic portfolio allocation. 
<h5>The post first appeared on COINTURK NEWS: <a href="https://en.coin-turk.com/analyst-highlights-potential-in-ai-altcoins-and-warns-of-correction/" data-wpel-link="internal">Analyst Highlights Potential in AI Altcoins and Warns of Correction</a></h5>

Analyst Highlights Potential in AI Altcoins and Warns of Correction

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