Altcoins are rolling once again as altcoin season is kicking into high gear.
• Ethereum (ETH, Tech/Adoption Grade “A-”) is relatively flat today, establishing itself around the mid-$1,800 level.
• Filecoin (FIL) is up more than 50% so far this week, having seemingly gone parabolic.
• Polkadot (DOT, Tech/Adoption Grade “C”) is up 10% today as it flashes some strength.
The Ethereum price is relatively flat today after the big run-up earlier in the week. The No. 2 cryptocurrency did retest its 21-day moving average earlier today but has since established itself in the mid-$1,800s. It’s failed to climb above $1,900 so far this week and will need to cross that critical resistance level if it’s to make a run at new highs soon.
If ETH fails to surpass the March 13 high of $1,968 during this current upswing, that would be a glaring sign of weakness and an early indicator of a potential bearish trend on the second-largest crypto asset.
Here’s ETH in U.S. dollar terms via Coinbase:
Filecoin is on a screaming hot tear this week and is trading above $190 today. This follows FIL’s 75% rally just last week. There’s no other way to put it: FIL has gone parabolic.
The open-source decentralized storage network was added to Grayscale Investments’ trust product offering, and demand has shot through the roof. FIL has almost increased tenfold since the start of 2021.
This is an example of one of the crazy runs we were used to seeing in the 2017 altcoin run, and it’s a good omen for the rest of the altcoin market.
Here’s FIL in U.S. dollar terms via Coinbase:
Polkadot has been channel-trading since setting its all-time high above $42 on Feb. 20, bouncing between $30 and $40. Last week, it fell below its 21-day moving average, though it regained that key metric today.
The DOT token is one of today’s big movers, as it’s up more than 10% and appears to have found some legs. If it closes above $38, we’re likely looking at a run past $40 to new highs.
Here’s DOT in U.S. dollar terms via Binance:
Notable News, Notes and Tweets
• Here’s a friendly reminder from BlockFi that there’s plenty of time and space left for this party.
• There’s absolutely no question now that Mayor Francis Suarez wants Miami to be cryptocurrency’s capital.
• In case you missed it, The Goldman Sachs Group Inc. (NYSE: GS) is “close” to allowing its wealthiest clients access to Bitcoin, and Pomp and other top voices in the crypto community took notice.
What’s Next
Today was a relatively flat day for the blue-chip cryptos, but it was awesome for many altcoins.
We are absolutely in the midst of a new altcoin season, stronger than any we’ve seen since 2017-18, and that should excite every crypto investor.
A lot of this new demand is coming from Grayscale’s new additions, as well as new additions to Coinbase and other major crypto exchanges. The “Coinbase effect” is real, and it’s powerful.
We’ll likely continue to see meteoric rises in some of the new altcoins that weren’t around during 2017 as people first start to truly understand these new projects. That’s what we’re seeing with Filecoin and Polkadot.
The interesting thing so far about this altcoin season is that we haven’t really seen the bigger altcoins and 2017’s major players rise yet, at least not relative to Bitcoin (BTC, Tech/Adoption Grade “A-”). If this truly is the start of an unprecedented altcoin season, that price action is inevitable.
We’ll be here when that happens, tracking the hottest, most viable altcoins.
Best,
Alex
