Altcoin Sherpa, a popular crypto strategist, is sounding the alarm on the altcoin market as digital assets like Chainlink (LINK) undergo a correction. The pseudonymous analyst, who has a following of 214,900 on social media platform X, suggests that most altcoins may enter a consolidation phase that could last several months. Altcoin Sherpa believes that after a significant surge, altcoins need time to cool down and stabilize.

Using Chainlink as an example, Altcoin Sherpa notes that the correction is not limited to this particular altcoin. Despite a lengthy accumulation phase, LINK only saw gains of 3x-4x, which is relatively modest compared to other altcoins. This correction is causing LINK’s price to decline.

Currently, LINK is trading at $13.21, representing a decrease of over 1% in the last 24 hours. Looking ahead, Altcoin Sherpa predicts that only specific sectors of the crypto market will perform well in the coming months. These sectors include well-established projects like Ethereum (ETH) and Solana (SOL). Additionally, the analyst expects strength from projects related to artificial intelligence (AI), memecoins, and newer projects such as Ethena (ENA) and Wormhole (W).

Altcoin Sherpa highlights the fragmented liquidity in the market, where only a few sectors are experiencing significant growth. The analyst emphasizes the importance of meme coins, projects with real value like ETH and SOL, and big token launches like ENA. Altcoin Sherpa believes that these coins will perform well once Bitcoin stabilizes, with market makers playing a crucial role in driving their prices higher. Lastly, the analyst mentions the potential of AI-related projects, which are expected to thrive in the crypto market.

At present, ENA is trading at $0.9311, while W is priced at $0.5697. It is important to note that the opinions expressed by Altcoin Sherpa are not investment advice, and investors should conduct their own research before making any high-risk investments in cryptocurrencies. The Daily Hodl, where this article was sourced from, does not recommend buying or selling any digital assets and is not an investment advisor.