How buy zone favors these altcoins: ADA, DOT, EOS, YFI

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YFI’s price has fallen by more than 9% in the last 24 hours, but trading value has increased by 23.4 percent. Though it is conceivable that YFI is traded on markets with this newfound liquidity, it is more likely that the commodity has succumbed to selling pressure and is now in the buy zone.

Based on metrics, now may be an excellent time to accumulate YFI. The number of transactions is another indicator that indicates a change in YFI’s price pattern (7d moving average). The cumulative number of transfers has hit 55.161. The previous ATL was found the day before.

Retail traders and whales may have booked their unrealised gains before the price dropped, as the number of sending addresses has already reached an ATL, according to Glassnode numbers. YFI’s story varies from that of top altcoin Ethereum. The active supply of Ethereum has reached a one-month peak.

Why altcoins like YFI, ADA, DOT, EOS are in the buy zone

YFI number of receiving addresses || Source: Glassnode

Altcoins such as ADA, DOT, EOS, and BCH are pursuing a similar trend as YFI, with trading volume the in the last 24 hours for the fourth day in a row. These alternatives have dropped by double digits after posting double-digit gains the previous week. If retail traders have these alts in their portfolio, it could be wise to accumulate more and get the average down before the market rally resumes.

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100x or double-digit returns are not necessarily the only strategy; dollar cost averaging is real, not only for Bitcoin, but also for alts like these at this point of the business cycle.

Cycle Bitcoin is also relevant in this market, as it is possible that the sideways Bitcoin price movement will lead to investment flow in alts and DeFi tokens, and there is proof that this is occuring in real-time; WBTC rising is a strong indication that more BTC is moving into DeFi.
Furthermore, there have been more shorts on Deribit and FTX in the last few hours than in the previous four days, which may suggest that the asset may take a dive before the pattern for alts like YFI reverses. Once the liquidation of longs reaches the liquidation of shorts (as it has traditionally done before a price reversal in Bitcoin), the trend in alts like YFI, ADA, and DOT is likely to reverse in the short term, before a further price decline.

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