Welcome to this week’s analysis on which altcoins are performing well and which ones are not. You can view the list here:
I’ve been working on several new charts that I have shared on X but I will also share them here in this week’s newsletter for those that prefer reading in a long format. Hope you enjoy this week’s newsletter and the exciting times ahead these next 12 months!
DOGE Top Indicator – Bitcoin ATH & Positive MACD
There’s been a lot of buzz about Dogecoin lately so I developed this top indicator that looks very interesting in addition to the 2 Week RSI indicator that I shared in last week’s newsletter. When Bitcoin breaks above ATH, this MACD histogram also starts turning positive (light blue bars) when applied to DOGE on the weekly timeframe. This marks the beginning of the DOGE parabolic run.
DOGE has had two major tops in previous cycles so I expect something similar to happen this cycle. The parabola for the first top lasts 12 weeks and then there is a correction which starts when the MACD Histogram turns dark blue for at least two consecutive weeks. The second parabola then starts after the MACD Histogram turns light blue again and lasts for 5-6 weeks marking the second and final top for the cycle.
Based on the data for this cycle, the first parabola started in early October 2024 and will end by late December 2024 if this pattern repeats itself. Looking forward to seeing how this plays out!
Altcoin Top Indicator – 2 Week RSI Bearish Divergence
This next indicator is applied to OTHERS which is crypto market cap excluding the top 10. This is a good gauge of the emerging altcoin market of the current cycle and tends to exclude the multi-cycle altcoins with diminishing returns. When 2 Week RSI is applied to OTHERS, similar to the DOGE top indicator, there are two major tops that form. The true top is revealed when RSI forms bearish divergence after a lower high in RSI. Let’s see if this plays out again this cycle. Still a long ways to go before a potential first top is in according to this indicator.
Large Caps
On a long term timeframe, we have a new arrival to the Large Cap list: Sui.
Our pro members were able to capture an entry to Sui at $1.07 and are now up a staggering 250%. It is now the best performing Large Cap outperforming Solana on both short and long term timeframes. We believe this still has a lot of room to run as we progress further into altcoin season in the next 6-12 months. There have been comparisons lately that Sui is the Solana of the previous cycle. I was intrigued by this and managed to capture this nicely in chart format and wow the similarities are stunning!
For large caps, here’s the ones that stand out on a long term timeframe:
- Sui
- Dogecoin
Sui is getting a lot of coverage today and I think it’s warranted. It is making new all-time highs almost daily. It is outperforming Solana in the last 365 days by 89% and in the last 180 days by 183%. I would say it’s still not in a good buy zone and hard to gauge when the next pullback may be. Its Sharpe Ratio is 1.65 which means it has excellent risk-adjusted returns. Dogecoin is outperforming Solana in the last 365 days by 29% and in the last 180 days by 90%. It is down 9% from its high so not in the best buy zone at the moment. Its Sharpe Ratio is 1.55 which means it has excellent risk-adjusted returns.
Here’s the ones that stand out on a short term timeframe:
- Sui
- Dogecoin
Sui and Dogecoin also make the short term outperformance list. Sui is outperforming Solana in the last 30 days by 29% and in the last 90 days by 201%. Dogecoin is outperforming Solana in the last 30 days by 96% and in the last 90 days by 140%. Excited to have these in the model portfolio these past couple months and looking forward to more potential gains to come.
Model Portfolio Update
The model portfolio continues to do well and is up 60% now.
We identified some good “buy the dip” opportunities in some of the model portfolio positions.
To see the complete portfolio, sign up and become a pro today and gain an edge in the crypto market.
Not financial advice. Please consult a financial advisor before making any investment decisions.
