Analysis Company: These 3 Altcoins Stand Out Against Bitcoin!

Fairlead’s 12-week relative rotation chart shows signs of green shoots for 3 altcoins. On the other hand, the analysis company states that DOGE, SOL and BCH are in the weakening quarter. This means that the well-known chest coin Dogecoin will probably underperform BTC.

Fairlead Strategies: These 3 altcoins are giving green shoots!

Crypto investors looking for clues to pockets of green shoots in the crypto market may want to consider Chainlink (LINK), Ripple (XRP), and Ethereum (ETH). That’s the message from Fairlead Strategies’ latest analysis of a 12-week relative rotation chart of the best altcoins compared to Bitcoin (BTC). A relative rotation chart (RRG) is a visual representation of the relative strength and momentum of multiple assets (altcoins) relative to a benchmark (BTC). The x-axis measures the relative strength of altcoins compared to BTC. Additionally, the y-axis shows the momentum of altcoins’ performance.

The chart consists of four quadrants: leading, waning, lagging, and favorable. The leading quadrant (upper right) indicates strong relative strength and positive momentum, the waning quadrant (lower right) indicates strong relative strength but negative momentum. Lag (bottom left) indicates weak relative force and negative momentum, while smoothing indicates weak relative force but positive momentum.

12-week relative rotation chart against BTC. Source: Fairlead Strategies, Bloomberg

“ “These 3 altcoins have less downside momentum versus Bitcoin!”

XRP’s move from the lagging quarter to the improving quarter, accompanied by ETH and LINK, shows that the three coins still have lower relative strength compared to BTC, but their performance is accelerating. In this context, Fairlead Strategies analysts make the following statement in a note to their clients:

We use RRGs (relative rotation chart) to value cyclicality among normalized top altcoins compared to Bitcoin. With Chainlink joining Ethereum and Ripple in the smoothing quarter, several altcoins have less downside momentum against Bitcoin.

DOGE, SOL and BCH are in the weakening quarter

The positive change from the lagging quarter to the improving quarter indicates that a rotation opportunity may arise in the coming weeks, allowing capital to flow into the improving quarter as investors seek exposure to the resilient corners of the crypto market. Momentum traders tend to view the move into the recovery quadrant as a potential opportunity, stating that the asset is showing signs of recovery and may perform more favorably in the near future.

DOGE, SOL and BCH are in the weakening quarter. This also points to the left. In other words, it indicates continued underperformance and a movement approaching the lagging quarter. The remaining top altcoins are currently in the lagging quarter. These exhibit both underperformance and negative momentum compared to BTC.