On-chain data from Santiment shows that altcoins are currently in the opportunity zone or generating buy signals. According to Santiment, the top 3 tokens in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH).
Historical trends suggest that profits from Bitcoin are likely to flow into altcoins at this point in the ongoing cycle. According to TradingView charts, the altcoin market cap (excluding Bitcoin) has increased by nearly 77% in value over the past 12 months. Here are three reasons why altcoins are generating buy signals:
Market capitalization altcoin up over 77% in 12 months
According to data from TradingView, the market capitalization of cryptocurrencies (excluding Bitcoin) increased from $551.9 billion on July 3, 2023 to over $1 trillion on July 3, 2024. The increase in market capitalization of more than 77% signals higher demand for altcoins, increased dominance over Bitcoin, and increased trader interest.
Analysts expect the altcoin market capitalization to increase steadily, as historical trends show capital is rotated from Bitcoin to altcoins every cycle.
Cryptocurrency Market Capitalization Bitcoin not included | Source: Tradingview
Crypto analyst Yoddha shares altcoin market cycles and “capital rotation” in the chart below:
Altcoin dominance rate | Source: CryptoYoddha
Entry point Potential for BAT, CHR, CAO
Data from crypto information tracker Santiment compares the average mid-term returns of each wallet across nearly all altcoins and notes that traders are sitting on unrealized losses.
The Median Value to True Value (MVRV) metric is often used to identify local tops and bottoms. The model shows possible entry points for 3 altcoins: BAT, CHR, and HIGH.
MVRV for assets in buy zone | Source: Santiment
Altcoins are in accumulation phase
Analyst ⓗ note that if cryptocurrencies continue to repeat previous cycles, altcoins have just completed wave 1, are in the re-accumulation phase, and are likely to follow with wave 2.
The analyst may be referring to Elliott Wave Theory. This theory identifies the pattern’s impulse waves and corrective waves.
You can see coin prices here.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any investment decisions. We are not responsible for your investment decisions.
Minh Anh
According to FXStreet
