341 Interactions, 2 today
According to coinmarketcap.com, almost all of the leading altcoins and Bitcoin are seeing a price decline. However, there are outliers, such as XRP, THETA, FIL, CRO, and MIOTA. They are outliers because their weekly ROI is in the double digits, is bullish, and is immune to the recent bearish outage.
Swimming against the current tide, holding these altcoins in a portfolio can mean the difference between nett unrealised benefit and nett unrealised loss. Outliers appear in every rally, but they also appear in every downtrend in the past.
They currently include top altcoins, DeFi, NFTs, and other tokens with storylines focused on product changes, releases, and supply shortage/liquidity pinch. ETH, with a 0.86 correlation to BTC, is about 48 days away from its local peak on February 2021.
The consolidation and price rise are expected; however, the current decline in trade volume (20 percent in 24 hours) and declining demand from institutional and retail traders may have delayed the uptrend in ETH.
Based on its historical experience, ETH may take more than a month to recover. This break from leading the alt rally is critical to increasing the ROI of outliers.
The trick to maximising returns on transactions for institutional traders is identifying the best combination of outliers, large-cap alts, and Bitcoin, as these coins take turns rallying every few months during the Bitcoin bull market. The bull market in Bitcoin, ETH, and the outliers is far from done.
Changes in HODLing behaviour and transitions, such as the one occuring on the ETH network, are fueling this change in leading the alt rally.
According to the Santiment map above, Ethereum’s top 100 non-exchange addresses now collectively possess the largest amount of ETH since July of 2016. Simultaneously, the top 100 exchange addresses are going in the opposite direction, selling or exchanging ETH to other wallets, since they have the lowest amount of ETH in over two years.
These shifts in ETH HODLing and whale behaviour are important for other alts like THETA, which are now being found more quickly on spot exchanges. Traders who are leaving BTC and ETH can invest in altcoins where trade volume is growing and liquidity is driving the price.
THETA is one such outlier, and it only became the retail traders’ muse after hitting $10, which occurred this week. The tokens that provided double-digit ROI in the previous week are now providing negative 24-hour returns, but the argument being discussed here is the quality of ROI and the ability to book unrealised gains.
This may be the alt rally revival that most traders have been hoping for since Bitcoin became rangebound once again in the latest market cycle.