This week I am going to put some focus on altcoins that could be about to rally as we have seen some spectacular gains in BCH, LTC, and to a lesser degree SOL.
One of the common themes that I have observed over time is that when Bitcoin starts to make a big move and then consolidates, often we start to see altcoins mimicking Bitcoin's initial move.
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Picking which altcoins might rally next actually requires some thought. The notion that all altcoins will just rally is a folly in my opinon. This market rally is quite different this time around.
Bitcoin, Ethereum, Bitcoin Cash, and Litecoin were all listed for the new EDX exchange, which is linked to major names like Charles Schwab and Fidelity. It's a no-brainer why those coins rallied.
Then we come to the next potential roadblock for altcoin. CELSIUS has the green light to sell a bunch of its cryptos and convert to BTC and ETH after a court ruling.
Check out the list of cryptos you probably need to be careful about buying in the next few days.
So, what is the take here after considering all the above. My take is that Ethereum is probably the altcoin that could start to pick up the slack and play catch up now given its relative underperformance in July.
Looking on-chain for ETH and various clues do exist of some substantial moves ahead that have probably not yet played out.
Heavyweight on-chain metrics depicting a major one-way trending move such as Age Consumed, Network Profit Loss. Exchange inflows/Outflows, Dormant Coin Acitivty (3-years +90-day).
Sentiment is also really bearish towards ETH. The Long/Short ratio also shows a major Short Squeeze in play.
Technically, ETH has considerable scope to rally. A break above $2,400 could catapult ETH much, much higher.
Other contenteders for me to consider going Long or going Long again considering the success of the recent LTC/USD buy signal are XRP/USD and LTC/USD (again). XRP certainly has its fundamental issues, but there is considerable upside if we see positivity from the SEC court case, plus the technicals do align.
My issue with XRP right now is that there are zero big on-chain movements. Crypto is dogged with inside corruption. Usually, big moves on-chain get flagged at least a day in advance.
My other top trade aside from ETH is LTC. I think the upside is not yet done and I think buying a dip under $100.00 makes sense given the fundies and the CELCIUS issue I mentioned early.
In terms of price targets, I think LTC could hit $135.00 to $140.00. If we see BTC hitting $35,000 then certainly momentum from that move alone can get ETH, LTC, and probably even XRP moving considerably higher from current levels.
