#TipsTradingFutures
Currently, only 18 of these assets have outperformed BTC price performance in the last 90 days. This means that altcoin season might not be happening any time soon. However, three altcoins—Book of Meme (BOME), Bitcoin Cash (BCH), and Aave (AAVE)—are flashing the potential to outperform Bitcoin's price performance in August.
Book of Memes Perched Above Resistance and Moving Average Keys
On Monday (29/7), the price of the Solana-based meme coin, Book of Meme (BOME), managed to break through the upper line of its horizontal channel, which had been forming resistance since June 29. Since then, the price has appreciated by almost 10%.
When an asset breaks the upper line of this kind of horizontal channel, it means a bullish breakout. This action indicates a surge in buying pressure as well as the potential for a continued uptrend. Traders often interpret this as a signal that market sentiment has shifted positively and a further price rally is underway.
Moreover, BOME price is also currently trading above the 20-day exponential moving average (EMA), which measures its average price over the past 20 days. When the price of an asset rises above this level, it is a sign that the short-term trend is strengthening and buying pressure has managed to outpace the token selloff.
If this trend continues in the BOME market, the price has the potential to rise to US$0.011, a price level last touched on June 7.
Bitcoin Cash (BCH) Enjoys Significant Bullish Bias
The value of BCH, the native coin of the peer-to-peer (P2P) electronic cash system, Bitcoin Cash, has been recorded flying as high as 15% in the last 7 days. During the intraday trading session on Monday, the altcoin managed to climb to a monthly peak of US$453.80.
Even though the BCH price has corrected by 4%, positive sentiment continues to accompany this altcoin. At the time of publication, this altcoin was sitting at US$436.11.
The soaring BCH Relative Strength Index (RSI) confirms the bias, aka bullish tendency, in this altcoin. Currently, the value is at 65.36, a signal that buying activity is significantly outpacing selling pressure among market participants.
Additionally, BCH's Chaikin Money Flow (CMF), which helps measure the flow of money into the asset, is on an uptrend and perched above the zero line, 0.16 to be precise. When an asset's CMF value is above zero, this means there is an inflow of liquidity into the market.
So, the combined analysis of the BCH price rally as well as its positive CMF confirms the chances of further price rally. If the current trend remains strong, the price of this coin could be ready to shoot up to US$453.10.
Aave (AAVE) Catat Reli Open Interest
The price of AAVE, the governance token of leading lending protocol Aave, has also witnessed a double-digit price rally in the last 7 days. Currently trading at US$105.62, the token has grown by 11% over that period.
Interestingly, this price rally has led to a surge of activity in the AAVE derivatives market. This is reflected in the increase in open interest in futures. According to Coinglass, token futures open interest has skyrocketed 36% in the last 7 days. At the time of publication, AAVE futures open interest was US$76 million.
This condition reflects an increase in the number of new traders who have entered the AAVE futures market to open new positions in the last week.
The generally positive funding rate that has since followed AAVE suggests that most new traders have opened long positions. This is a bullish signal, as it means there are more and more traders betting on a continued price rally.
If AAVE is able to maintain its uptrend, the price will soar to a two-month high of US$111.86.
However, if it turns out that profit-taking activity occurs at this point, the token price is at risk of plummeting to US$101.98.
