- Amid the dominance of Bitcoin in the crypto markets, there is growing speculation that a shift toward altcoins is on the horizon.
- Market analysts are increasingly optimistic about the potential rise of altcoins in the near future.
- One analyst has specifically highlighted the potential of RNDR coin and DOGE as ones to watch.
Explore the potential shift in the crypto market dynamics as experts predict a rise in altcoins, possibly signaling a new investment wave.
Bitcoin’s Dominance Facing Potential Challenge
In the latest episode of the Discover Crypto podcast, analyst Kelly Kellam emphasized the possibility of Bitcoin’s market dominance waning soon. According to Kellam, this could serve as a critical indicator for an altcoin rally. He pointed to patterns of “bearish divergence” on the dominance chart and noted a broken trend line that has shifted from support to resistance, intersecting at a multi-year resistance level. This alignment suggests a potential tectonic shift in market dynamics.
Anticipated Market Movements
Kellam predicts that while Bitcoin may take 5-6 weeks to reach a peak, there could be a pullback before this happens. He highlighted that in such squeezing formations, prices tend to break out around 70% of the pattern’s completion. This insight suggests that the imminent period could witness significant market shifts, particularly in favor of altcoins.
Focus on RNDR Coin and Key Altcoins
During his appearance on The Sniper Trading program, Kellam discussed how the normalized strength index (RSI) on weekly charts is a powerful tool for assessing altcoin buying opportunities. Historically, an RSI below 40% has indicated optimal purchase periods for various altcoins. For instance, in 2021, Thorchain saw its best buying zones around $3, later reaching $15 and yielding a 45x return for investors.
Evaluating RNDR Coin’s Performance
Kellam highlighted Render (RNDR) as another successful example of this strategy. When RNDR last touched the 40% RSI zone, it was priced at approximately $1.4 and subsequently surged to $12. Similar trends were observed in Dogecoin and Cardano, which are currently in comparable phases. Investors are advised to monitor multiple altcoins’ RSI levels to identify the most opportune buying moments.
Conclusion
In conclusion, the potential decline in Bitcoin’s dominance could mark the dawn of a bullish period for altcoins. Analyst Kelly Kellam underscores that tracking weekly RSI values on altcoins can help investors capitalize on buying opportunities. However, it’s crucial to conduct personal market analysis and take into account prevailing conditions before making investment decisions. This article is not financial advice.
