Ready For Takeoff? Top 3 Altcoins To Watch This Week

The altcoin market, encompassing cryptocurrencies other than Bitcoin, has been licking its wounds after a recent downturn. However, analysts are pointing to several factors that could trigger a resurgence this week.

Firstly, on-chain data—information publicly available on a blockchain—suggests altcoins are presenting a buying opportunity. Sentiment, a crypto analytics firm, uses on-chain metrics to identify the “opportunity zone,” where specific altcoins might be undervalued. Currently, Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH) are the leading contenders for this zone.

Secondly, historical trends suggest a potential capital rotation from Bitcoin to altcoins. The altcoin market capitalization, excluding Bitcoin, has surged by over 77% in the past year, according to TradingView. This growth signifies rising investor interest and dominance for altcoins. Analysts predict this trend will continue, mirroring past crypto cycles where capital flowed from Bitcoin to altcoins during specific phases.

Finally, specific altcoins like BAT, CHR, and HIGH might be entering profitable entry points. Crypto intelligence platform Santiment utilizes the Mean Value to Realized Value (MVRV) metric. This metric compares the average price at which investors hold an altcoin to the price they paid for it. A low MVRV indicates that investors are “underwater,” potentially signaling a buying opportunity. Santiment’s data suggests these three altcoins are currently in such a zone.

Adding to this optimism, analyst @el_crypto_prof, using the Elliott Wave Theory, suggests altcoins are still in the early stages of a potential growth cycle. This theory identifies repetitive wave patterns in markets, and the analyst believes altcoins are in the “re-accumulation phase,” which often precedes significant price increases.

While the future remains uncertain, these factors paint a potentially bullish picture for altcoins this week. Investors should, however, conduct their own research before making any investment decisions, as the cryptocurrency market is inherently volatile.