Technicals Could Point to Upside for This New Crypto ETF

When bitcoin sneezes, altcoins often catch a cold or worse. For many altcoins, that’s exactly the scenario that’s playing across more than two months of bitcoin volatility and retrenchment. Understandably, that gives some investors pause about embracing crypto risk. Still, as the old saying goes, if there’s blood in the streets, maybe it’s a buying opportunity.

More succinctly, now may be an ideal time to at least examine the CoinShares Altcoins ETF (DIME) – a newly minted, actively managed ETF that focuses on higher tier altcoins.

Home to altcoins including Polkadot, Near Protocol, Cosmos, Aptos, SUI, Toncoin, and SEI, DIME could merit attention over the near-term. Technical conditions on various digital currencies that aren’t Bitcoin could be signaling a rebound is nearing.

Charts Could Be Good News for DIME

As it relates to DIME, the “blood in the streets” saying is worth remembering. Crypto altcoin sentiment is currently negative to an overwhelming degree.

“Broader sentiment has weakened as well, with the CMC Altcoin Season Index registering just 20, which still places the entire market in a Bitcoin-favored phase. Meanwhile, a critical indication has been detected from on-chain data that suggests this may be a rare moment to accumulate strong altcoin positions before conditions eventually turn,” reported NewsBTC.

Regardless of asset class, history shows that when market participants become so decidedly negative, markets often react in opposite fashion. Said differently, it sure feels like every crypto trader hates altcoins today, but that could be a sign DIME and its components are poised to bounce back in a big way and do so over the near-term.

“The sentiment is also evident in CoinMarketCap’s Fear and Greed Index, which is now at 22. Readings this low signal hesitation across the market, as investors shy away from taking new positions, and this environment makes an altcoin season much harder to materialize,” added NewsBTC.

As for the technical condition that could support a near-term bull case for DIME, it boils down to the 30-day trading average of various altcoins measured against the one-year trend line. When the 30-day average moves below the 12-month average, it’s often been a prelude to a rally – something for prospective DIME investors to consider.

“Each time this pattern has appeared in past cycles, it marked a period when activity was unusually quiet and traders were hesitant, but it also tended to show up just before the market picked up again,” according to NewsBTC.

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