As Bitcoin continues to consolidate in a tight range, many altcoin charts are flashing bullish signals. While this is an exciting time for altcoins, it's essential to stay cautious and keep an eye on Bitcoin's movement. Bitcoin is just 1.4% away from testing a key green support line, which will likely determine the next direction for the entire market. As the crypto world waits for Bitcoin’s next move, altcoins are starting to show signs of life, with several charts looking poised for a potential breakout.
Stablecoin Dominance and OTHERS.D Remain Positive
Before diving into the individual altcoins, it's worth noting the overall market structure. Stablecoin dominance is falling, and OTHERS.D (which tracks altcoin market dominance) is looking fantastic. This shift indicates that market participants are beginning to rotate capital out of stablecoins and into riskier altcoins, a clear signal of growing bullish sentiment in the altcoin space.
TON, Cardano, SHIB, and AVAX Leading the Charge
Let’s start with TON. The price is right at resistance, but what’s most notable is the recent TBO Close Short signal 🔶 on the daily chart. This signal often indicates the end of a bearish trend and can be a precursor to a bullish reversal.
Cardano (ADA) is another altcoin to watch closely. It’s currently above overhead resistance and closing in on the 0.236 Fibonacci retracement level. More importantly, Cardano printed a TBO Open Long (green triangle), signaling the start of a bullish trend. If it can push up and out of the daily TBO Cloud, this would be a strong confirmation of bullish momentum.
Shiba Inu (SHIB) is also looking bullish, with its OBV (On-Balance Volume) clearly trending above the white moving average. The price is already above the 0.236 Fibonacci level and is approaching overhead resistance. A breakout here could lead to a significant move higher.
Avalanche (AVAX) is another chart that’s very close to breaking out. It’s just shy of pushing above the daily TBO Cloud, a key level that, if broken, could signal the start of a strong bullish trend.
NEAR and ICP are in similar situations, both showing strong upward momentum. NEAR has already made a major push to a higher recent high, with OBV trending up and volume increasing. It’s now just about to break out of the daily TBO Cloud. ICP is following a similar trajectory.
FET and APT have already broken above their respective daily TBO Clouds. FET’s price action is slowing down, but OBV continues to trend higher, and daily volume is steadily increasing. APT is pausing at the 0.382 Fibonacci level, but volume and OBV are bullish, suggesting that further upside could be ahead.
STX and WIF are additional examples of charts showing strong bullish signals. STX is above the daily cloud with bullish OBV, although volume hasn't surged just yet. Meanwhile, WIF, a meme coin, remains below the daily cloud, but both volume and OBV are signaling bullish momentum. Meme coins like WIF are notoriously volatile and can make dramatic moves, as seen in late July.
SUI: A Chart Worth Watching
Finally, let’s talk about SUI, a chart that has been highly volatile but offers significant potential. SUI’s price has fluctuated dramatically, but the TBO’s signals have been incredibly accurate. Entering the chart on the TBO Open Long would have been a great call, and while SUI hasn't broken above the daily cloud just yet, it's worth paying close attention to.
As these charts illustrate, the TBO Indicator excels at highlighting strong trends, whether bullish or bearish. Many altcoins have yet to push above their daily clouds, but their time will likely come soon. Watching for TBO Close Short signals (🔶) and Open Long signals (green triangles) can provide critical insights into the strength of the trend.
Trend Trading Yields the Best Results
While it's tempting to take profits too early, especially after altcoins have been oversold for such a long time, it’s crucial to remember the value of trend trading. Riding these trends and taking partial profits on the way up can maximize your gains. The market is clearly showing bullish signs, but we're not quite there yet. However, as Bitcoin consolidates, the potential for altcoins to break out continues to grow.
The key is to remain patient and let the market confirm these trends before diving in headfirst. Altcoins are showing signs of strength, but Bitcoin’s movement will ultimately dictate the larger trend. So while it’s a great time to keep an eye on altcoins, always keep Bitcoin’s historical fourth-quarter performance in mind.
Stay Cautious but Optimistic
The altcoin market is showing bullish signs, but it's essential to stay cautious. While several charts are close to breaking out, Bitcoin remains in consolidation, and its next move will likely determine the fate of the broader crypto market. Keep a close eye on the TBO signals and be prepared to adjust your strategy as the market evolves.
