Bitcoin’s latest rally still faces some tests. However, the largest cryptocurrency’s rebound may renewing animal spirits in the crypto universe. If that trend proves durable, it could benefit altcoins and the CoinShares Altcoins ETF (DIME), which is the first ETF dedicated to that asset class.
Experienced crypto investors know that Bitcoin is often the tail that wags the dog in the cryptocurrency space.
That worked in DIME’s favor last week. Bitcoin’s bounce propelled the actively managed ETF to a weekly gain of nearly 9%. Bitcoin’s rally is, perhaps not surprisingly, providing bullishness to Ethereum. Although DIME doesn’t hold the second-largest cryptocurrency, investors considering the ETF may take heart in Ether’s rebound. It may signal more upside ahead for other more relevant, higher quality altcoins.
These Coins Could Lift DIME
In a recent interview with CoinPedia, crypto analyst Dan Gambardello highlighted a quartet of altcoins worth watching over the near-term, two of which are DIME components. One of those is Cardano, which is presenting traders with an interesting technical setup.
“Cardano’s daily MACD is showing a squeeze that looks nearly identical to the October and November 2024 structure that preceded ADA’s breakout. Gambardello is waiting for one specific signal: the histogram closing green above the zero line with genuine momentum behind it,” reported CoinPedia.
Another DIME holding that could be a contributor to more upside for the ETF is Sui (SUI).
“SUI has declined 85% from its swing high. The monthly Stochastic RSI has been in oversold territory for over a year, an unusually extended reading for a quicker-moving momentum oscillator,” according to CoinPedia. “Gambardello said this kind of prolonged oversold condition does not happen often. If a reversal comes, he is watching $1.50 as the short to medium-term target.”
Though not mentioned in the report, Solana is worth watching. Recent data indicates nearly $25 million in short positions were liquidated as Solana flirted with $90. Some prediction markets traders believe that the cryptocurrency is destined to soon hit $105.
“The geopolitical de-escalation pushed traders to cover bearish bets, triggering the $24M liquidation event across crypto markets. The $105 target being priced at 100% reflects reduced geopolitical risk premium, not any fundamental change in Solana’s ecosystem,” noted CryptoBriefing.
For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.
