Altcoins: 3 Investor Favorites Defying Bitcoin Chop
Bitcoin’s climb to new heights above $85,000 has stalled for over a week now, and market jitters are on the rise, pushing the crypto fear and greed index deep into “extreme fear.” These uncertain price swings have triggered a significant exodus of funds from spot Bitcoin ETFs held by institutions this week. Interestingly, while Bitcoin is experiencing these consistent outflows, there’s a different story unfolding in the altcoin market. Investors are showing strong interest and actively accumulating three specific altcoins, hinting at a potential surge in their prices soon.
Top 3 Altcoins Investors Are Buying as Bitcoin Price Struggles
As Bitcoin grapples with the challenge of surpassing its previous peak, crypto investors are strategically shifting their focus to altcoins, seeking out new profit opportunities. Adding to the cautious mood, the CEO of CryptoQuant has even suggested that the Bitcoin bull run might be over, cautioning that the leading cryptocurrency could be entering a bearish phase lasting anywhere from six months to a year.
Adding to this perspective, prominent analyst Julio Moreno has also pointed out a trend: US-based ETFs have now seen negative flows for the fifth week in a row. This consistent outflow suggests that institutional interest in Bitcoin might be waning at the moment.
However, while many traders are hesitant about Bitcoin right now, three altcoins are bucking the trend. These altcoins have witnessed a notable increase in exchange outflows, signaling an accumulation trend as investors bet on potential future gains. The altcoins capturing investor attention are Ethena (ENA), Mantra (OM), and Maker (MKR).
Ethena (ENA)
Ethena is standing out as one of the altcoins experiencing rapid accumulation by traders, despite a recent price dip of 21% over the past month. Interestingly, even with this price decrease, ENA exchange outflows have jumped by over 66%, suggesting that investors are holding onto their tokens and not looking to sell.
A key factor driving this accumulation in ENA could be the newly announced collaboration between Ethena Labs and Securitize. These two companies have recently launched the Converge layer-1 blockchain, aiming to bridge the gap between traditional finance and the world of decentralized finance (DeFi).
Investors are hopeful that this launch will ignite positive momentum for Ethena’s price. Technically, ENA has also formed a rounding bottom pattern on charts, and if it manages to bounce back to the neckline around $1.32, some analysts predict a significant potential rally of 560% towards a price target of $8.80.
Mantra (OM)
Mantra (OM) is another altcoin catching the eye of crypto traders, fueled by a significant 53% surge in exchange outflows within just the last 24 hours. Interestingly, Mantra is standing strong as one of the few altcoins resisting the broader bearish trends currently affecting the crypto market. As of now, OM is trading at $7.04, having gained a solid 12% over the past week.
Looking at the token’s daily chart, the Relative Strength Index (RSI) has climbed to 55, and the volume histogram is showing increasing buying momentum. Having already broken through the 61.8% Fibonacci retracement level, Mantra’s price is now setting its sights on further gains, potentially targeting the 123.6% Fibonacci level around $10.53.
Maker (MKR)
The price of Maker currently sits at $1,222, reflecting a modest increase of 1.2%. Similar to ENA and OM, Maker (MKR) is also seeing strong accumulation trends, with exchange outflows for MKR tokens jumping by 51% in the last 24 hours. This suggests traders are opting to move their MKR holdings off exchanges, likely as a strategy for longer-term holding.
Maker has been drawing considerable attention recently, particularly since its rebranding to Sky, as it continues to expand its footprint in the Decentralized Finance (DeFi) sector. Adding to the bullish signals, the Relative Strength Index (RSI) on Maker’s daily chart has also shown a positive shift, crossing above the signal line. If the RSI can break above the 50 level, it would further confirm a change in market momentum, potentially leading to a more optimistic outlook for Maker’s price.
Final Thoughts on the Top Altcoins to Buy
Bitcoin’s price action remains uncertain, characterized by volatile swings amidst significant outflows and a general sense of market fear. However, as investors look beyond BTC for opportunities, there’s growing potential for a rally in these three altcoins, driven by the substantial increase in tokens being moved out of exchanges.
Frequently Asked Questions (FAQs)
Amidst Bitcoin’s recent price downturn, crypto investors are showing increased accumulation in Ethena, Mantra, and Maker tokens.
Ethena (ENA) is attracting considerable attention following Ethena Labs’ partnership with Securitize to introduce a new layer 1 blockchain aimed at integrating traditional and decentralized finance.
Bitcoin’s price faces an uncertain future, with some analysts suggesting the bull market has concluded, making a definitive breakout above $85,000 less likely in the near term.
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muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
