In a live stream on Tuesday, analyst Sheldon shared the exact trigger point for his decision to go all-in on altcoins, a signal that is more specific than most traders expect.
Key Signals He is Watching Closely
Before making significant altcoin moves, Sheldon focuses on two key indicators. The first is the USDT dominance rate. When the USDT dominance rate peaks and begins to decline, it indicates that funds are flowing out of stablecoins and back into the market. He noted that the USDT dominance rate has shown signs of peaking. The second is the decline in Bitcoin's dominance during price increases. When Bitcoin's price rises but its dominance is falling, it suggests that altcoins are participating in the upward movement. Currently, both conditions are beginning to manifest.
Over 50 Tokens Breaking High Time Frame Trends
During Tuesday's live stream, a striking observation was made: the analyst stated that he has identified over 50 tokens currently breaking through high time frame trend lines. Among them, Zcash stood out, recording a 16% increase after breaking a key weekly trend. However, he clearly pointed out that the right strategy is not to chase after coins that have already surged significantly.
The strategy he advocates is to capture those coins that are in the “disbelief phase,” which is the slow, calm breakout period before trading volume and market interest arrive. He emphasized that coins still in this early stage include: SUI, which is entering a strong upward zone, NEAR with a target price between $1.80 and $2, Chainlink on the verge of a breakout, and Ethereum, which could rise to $3,400 if it maintains its current structure.
Current Key Price Levels for Bitcoin
The overall layout of the altcoin market is gradually taking shape, but the signal that triggered Sheldon’s full entry has not yet fully emerged. His advice to traders focusing on this market is to stop chasing coins that have already risen and instead start looking at potential coins that have yet to take off.