Bet on Altcoins, Say Analysts

Bet on Altcoins, Analysts Say

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At least three altcoins are ready for a rally and can surpass bitcoin in dynamics. This was reported by the crypto-analytical company Santiment.

Santiment connects the fast rise of altcoins with the announcement that in China, the national blockchain alliance known as the Blockchain Service Network (BSN) uses the Chainlink network with its native cryptocurrency LINK. The rise of Ethereum (ETH) and Ren (REN) is also expected to be more significant than the rise of the first cryptocurrency.

Santiment is engaged in short-term forecasts for “day traders”, that is, for those who trade within the trading day. The target is to predict trends for traded crypto assets, bullish, or bearish. The following three metrics are used:

  • Network Value to Transactions Ratio, NVT, when the volume of transactions is compared with the market capitalization of the network. If this indicator is low, the asset is considered to be overvalued. And vice versa.
  • Daily Active Addresses (DAA) – this indicator takes into account the ratio of unique crypto addresses to the price divergence of a particular coin. If the price movement is ahead of the DAA – this is a bearish signal. And vice versa.
  • And finally, the third metric, Sentiment Volume Consumed, measures the mood of the market participants on Twitter.

Santiment conducts measurements of leading cryptocurrencies on a three-day basis, all three metrics are summarized and forecasts are made based on this indicator. According to analysts, Bitcoin scored 4.5 points in the rating – this means a neutral forecast. ETH has 6.8 points – this is a slightly bullish signal. LINK received 7.2 points in the ranking, this is interpreted as a stronger bullish signal. And REN with 6.3 points also has a bullish trend, but slightly bullish too.

You can be skeptical about the method of measurements. But in any case, it makes it possible to assess the potential of altcoins relative to the leading cryptocurrency. If the trends are determined correctly, then speculators can make good money in the coming days by shifting from bitcoin to these three altcoins. Santiment emphasizes that determined trends – bullish or bearish – are short-term and should not be taken into account to evaluate the asset in the long term in case of investment.

Of the three altcoins, LINK, the native cryptocurrency of the Chainlink project, 12th place in the market capitalization rating, is of greatest interest today. This coin has been on the rise for the past few months. And every time its soar is connected with the news from China. In March, LINK soared to $ 4.64 after reports that China was launching state DCEP cryptocurrency. The current rise to a historic high of over $ 6 is also associated with events in the Celestial Empire. Perhaps the supporters of fundamental analysis should pay closer attention to news from China.