Altcoins Analysis – November 14, 2024

The recent altcoin market movement has left many investors disappointed, as the anticipated continuation of the previous +60% surge has not materialized. However, it’s important to note that, despite Bitcoin’s current dominance, altcoins have managed to retain over 30% of the profits from the previous rally. This resilience is evident in the fact that the total market cap has not dropped below the former resistance level of $1.088 trillion.

The rotation of smart money into altcoins is taking longer than expected, primarily due to the current institutional focus on Bitcoin. Several factors contribute to this phenomenon:

Institutional FOMO: We are witnessing increased interest from institutional investors driven by Bitcoin’s strong narrative.

Political and Economic Influences: The re-election of Donald Trump and Michael Saylor’s efforts to promote Bitcoin adoption among major corporations have fueled this trend.

Financial Advisory Support: Numerous large financial advisory firms are now actively recommending Bitcoin to their clients.

These dynamics have led to a prolonged allocation of capital in Bitcoin. However, this trend is expected to shift as Bitcoin's price moves further away from its previous all-time high of $73K.

In our previous analysis, we highlighted the need for a market pullback, which has since occurred. Now, conditions appear favorable for the next leg of the rally. The key moment will come when the market breaks through the critical resistance zone (the red band on the chart). Although a breakout may not happen this weekend, we are confident that it will occur in the coming week.

Several altcoins are already exhibiting strong buy signals. Investors should use this opportunity to identify and invest in these promising assets if they have not done so already. Focus on sectors with significant growth potential:

Artificial Intelligence (AI)

Real World Assets (RWA)

Decentralized Physical Infrastructure Networks (DePIN)

Stay vigilant and prepare for potential gains. Best of luck to all!