4 months ago
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Bitcoin dominance has been signaling an inevitable reversal in the near term, which will trigger the much-anticipated altcoins bullish breakout.
The ongoing Bitcoin (BTC) price pump above $67k on Friday carried with it most of the altcoins led by Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE). Furthermore, the recently approved spot Ethereum ETFs, apart from Grayscale’s ETHE, have been registering significant cash inflows in the past three days.
As a result, the confidence in the altcoin industry has significantly improved in the recent past, with more institutional investors adopting the web3 projects.
Although Bitcoin dominance has scaled to a new yearly high of about 56.50 percent, several indicators led by the weekly Relative Strength Index (RSI) point to an inevitable reversal in the near term. Historically, the reversal of the Bitcoin dominance after a rising trend triggers major altseasons.
Top Altcoins to Buy Ahead
According to market intelligence platform Santiment, crypto investors should closely watch for highly undervalued altcoins to maximize profits in the anticipated altseason. Santiment believes that altcoins that have demonstrated extreme pain for the investors potentially have the best returns.
“If you believe markets are about to surge, history says that buying into assets that traders have experienced the most pain in have a greater probability of netting high returns for you,” Santiment noted.
Uniswap (UNI)
Uniswap (UNI), a mid-cap altcoin with a fully diluted valuation of about $7.6 billion and a total value locked of around $5.5 billion, takes pride in more than 381k on-chain holders. The altcoin pumped over 6 percent in the last 24 hours to trade around $7.65 on Friday.
Nonetheless, UNI price against the US dollar is still down around 83 percent from its all-time high (ATH), $44.92 set in May 2021. With an all-time low of about $1.03, UNI price has more upside to discover in the bull run than most large-cap altcoins.
Shiba Inu (SHIB)
Shiba Inu (SHIB), the largest meme coin on the Ethereum network, has attracted notable attention from speculative traders due to its growing ecosystem. The large-cap meme coin, with a fully diluted valuation of about $16.8 billion and a daily average traded volume of around $267 million, is still down over 80 percent from its all-time high.
The meme coin project has significantly benefited from the ongoing adoption of the Shibarium layer two network. Furthermore, the Shibarium network has increased the SHIB burn rate, which was kickstarted by Vitalik Buterin.
Polygon (MATIC)
Polygon (MATIC), a top-tier layer two scaling solution on the Ethereum network, has significantly benefited from the mainstream adoption of Ether. The mid-cap altcoin, with a fully diluted valuation of about $5 billion and a TVL of around $12 billion, is used by dozens of web3 projects.
However, MATIC’s price is still trading around 51 cents, more than 82 percent from its ATH, thus presenting a potentially profitable opportunity against risk.
Chainlink (LINK)
Chainlink (LINK) plays a crucial role in the democratization of smart contracts across multi-chain projects. The large-cap altcoin, with a fully diluted valuation of about $13.4 billion, surged 3 percent in the past 24 hours to trade around $13.4 on Friday.
Despite the notable adoption of Chainlink by institutional investors, the altcoin is still trading more than 75 percent down from its all-time high.
Cardano (ADA)
Cardano (ADA), one of the top-tier layer one blockchains with an FDV of about $18.6 billion, has signaled an inevitable bullish breakout ahead. Trading around 41 cents on Friday, up about 4.3 percent in the past 24 hours, the altcoin is more than 86 percent down from its ATH.
XRP
Ripple-backed XRP, with an FDV of about $60 billion, has significantly benefited from the notable progress in the ongoing lawsuit filed by the US SEC. The altcoin has pumped over 30 percent in the past two weeks to trade around 60 cents on Friday.
However, XRP’s price is still down more than 82 percent from its ATH.
