Altcoins
“Spectacular meme executions” mean these three altcoins could be “doomed to irrelevance,” says veteran trader
April 29, 2024 10:10 a.m. | 2 minutes of reading |
Pseudonymous crypto traderShiller in cold blood” raises the question of whether the market is already starting to phase out some altcoins in favor of the most successful artists And Bitcoin (CRYPTO: BTC).
What happened: Shiller points out that every crypto cycle sees coins that perform well but fail to reach new all-time highs in subsequent cycles. During the current cycle, the strength of Bitcoin cannot be doubted, and there have been strong altcoin narratives and spectacular coin runs. However, Shiller notes an interesting separation between altcoins.
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Parts same as dog hat (CRYPTO: Wireless), Pepe (CRYPTO: PEPE), And Floki Inu (CRYPTO: FLOKI) have seen gains of between 1,600% and 360% year to date. Dogecoin (CRYPTO: DOGE) And Shiba Inu (CRYPTO: SHIB) also saw gains of 57% and 125% respectively.
Using Polygon (CRYPTO: MATIC) as an example, the trader highlights how the token has reversed its entire advance in 2023/2024 and is trading below a key support level, while BTC is holding up well and other altcoins maintain their gains from the last seven months . Pool (CRYPTO: YES) And ApeCoin (CRYPTO: MONKEY) are the other two examples.
“It would make sense to simply ignore alts that failed to maintain their 7-month progress, and we can easily determine strength from the percentage of gains retained,” notes the trader.
Read also: Meme Coins Are “A Pure Ponzi” And “Destroying Crypto,” Says Trader Who Thinks Dogecoin Was Different
Why is this important: Shiller wonders if these underperforming altcoins are doomed to no longer be relevant and if the market is already making the decision to phase out the coins in preference to top performers or Bitcoin.
However, this process occurs between cycles, but this time the market could make these decisions in the current climate, Shiller suggests.
The trader’s advice highlights that spotting good altcoins can be more difficult than expected. Traders may want to use a framework, such as this trader’s:technique to spot altcoins before a 100X increase.”
And after: The influence of altcoins And Bitcoin as an institutional asset class are topics that should be explored in depth at the next Benzinga conference The future of digital assets event on November 19.
Read next: Is the “Memecoin supercycle” over? Mad Crypto Alpha with Ivan
This content was partially produced using AI tools and was reviewed and published by Benzinga editors.
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