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| By Bruce Ng |
Bitcoin is in a downtrend right now.
That’s evidenced by its recent series of lower lows and lower highs.
It’s currently trading just above $55,000.
If it goes down further, $52,000 and $43,000 are strong levels of support. If it goes up, $59,000 is strong overhead resistance.
Right now, momentum favors the bears. It will be harder to climb up than go down.
But we must get ready for the eventual bull.
I believe it will eventually return.
First, though, the following U.S.-based events pose uncertainties to the crypto market …
- Sept. 18: An interest-rate cut of 25 or 50 basis points.
- Nov. 4: The presidential election.
Once we get through those events, the crypto markets should have more clarity and, in turn, rally again.
But in times of BTC dumping, like we’ve seen recently, altcoins (e.g., everything but Bitcoin) usually get dragged down even more.
However, some “alts” have demonstrated incredible strength. They either maintained their value or, more remarkably, have gone higher.
Three amazing altcoins, from three different sectors, come to mind.
We will use the BTC denominator to display their strength relative to BTC in the charts below.
1. DogWifHat (WIF, “D-”) — memecoin
Even with repeated Bitcoin dumps, DogWifHat has maintained strong support at $1.50.
Even more impressive, over the past three weeks, it’s been going up against BTC.
My analysis shows WIF is getting stronger compared to Q1 during its parabolic rally.
Because it doesn’t dump much when BTC dumps, it is quite likely to pump a lot when BTC rallies.
That makes WIF a must-hold when the bull rally returns.
2. Aave (AAVE, “C+”) — DeFi lending
Aave is decentralized finance’s “OG” lending platform.
It’s also the top crypto lending platform, with some $10.6 billion in Total Value Locked.
For comparison, JustLend assumes a distant second position at $5.46 billion.
Usually, large caps make poor investments as they have little room to grow.
But with the upcoming U.S. election set to shape crypto’s short-term future, this could become one of the few DeFi platforms to hit mainstream adoption soon.
3. Sui (SUI, Unrated) — Layer-1 platform
Developed by Mysten Labs, Sui aims to address limitations in current blockchain systems.
Sui is a high-performance, Layer-1 blockchain. It’s designed to offer fast and scalable decentralized applications (dApps).
Its architecture allows for parallel transaction processing, leading to faster throughput and lower latency.
Sui is gaining attention for its potential in DeFi, NFTs and gaming due to its focus on scalability and security.
In terms of the fastest growing L1s in TVL in the past month, SUI ranks third, after CORE (CORE, “D-) and Sei Network (SEI, Unrated).
The list above is for TVLs above $100 million.
These 3 Amazing Alts Have
One Important Item in Common
Relative strength is an idea that demonstrates how strong a coin performs in the following scenarios:
- How much it holds it value during market-wide dumps.
- How well it rebounds after market-wide dumps.
- How much more does it outperform other coins during rallies.
I think WIF, AAVE and SUI have shown some of the best relative strength in the crypto world.
That’s evidenced by their performance and outperformance against some of the most popular cryptos over the past few months.
Their relative strength suggests that they could continue to do well once the rally begins again in earnest. Perhaps very well.
Something else that’s set to shine is artificial intelligence. Wall Street is starting to say that rate cuts could give a boost to AI companies’ bottom lines.
But my colleague Michael Robinson is thinking bigger. That is, companies that are already raking in big profits from their AI businesses.
Tomorrow afternoon at 2 p.m. Eastern, he’s revealing his research that led him to uncover “The Next Nvidia.” And from what I can see, relative strength isn’t a worry with those picks.
Click here to save your seat at tomorrow’s elite AI event.
Best,
Dr. Bruce Ng
