Dedicated cryptocurrency investors, particularly those experienced with assets outside of Bitcoin, often ponder if altcoin season has returned. Often, the answer is “no,” but there are signs it could soon be “yes” if it isn’t already.
Consider the following. The CoinShares Altcoins ETF (DIME) is higher by more than 5% over the past month. That may be a sign that altcoins are on the mend. DIME holds a variety of higher tier altcoins, which is notable because the fund’s recent strength may be signaling that crypto investors are positioning for an extended run of altcoin upside and they’re doing so with quality, not highly speculative tokens.
Further supporting the outlook for DIME is evidence that Bitcoin dominance is waning. It’s worth noting the largest cryptocurrency has been perking up of late, which could be of assistance to upper echelon altcoins.
“For months, Bitcoin was the only coin that mattered, but that leash is finally snapping. Analysts call this a rotation. Traders are selling some of their Bitcoin gains to buy into altcoins that haven’t rallied as much yet,” according to TipRanks.
Trends to Watch with DIME
Ethereum, the second-largest cryptocurrency by market capitalizsation behind Bitcoin, isn’t a part of the DIME roster, but believers in the return of a new altcoin season should still stay abreast of what’s happening with Ether.
“You cannot have a true altcoin season without Ethereum. The second-largest crypto jumped 10% this week. It easily outperformed Bitcoin’s modest 3% gain. This is a classic sign of a broadening market,” added TipRanks.
XRP, another altcoin that isn’t a part of the DIME portfolio, may also hold clues about the near-term fate of the altcoin resurgence.
“People are now watching to see if XRP can hold its ground at $1.55. Staying above this level through the upcoming Federal Reserve meeting could confirm that we are in the early stages of a massive altcoin season. The next technical target for XRP is the $1.60 to $1.65 range,” observed TipRanks.
It’s not a knock on DIME that Ether and XRP aren’t part of its roster. The ETF still holds many of the highest quality altcoins on the market today, but Ether and XRP are integral to the fate of an altcoin rally, indicating DIME investors should, at a minimum, monitor those two digital currencies.
For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.