Bitcoin broke above $58,000 on the back of a rally in U.S. tech stocks and expectations that the Federal Reserve will cut interest rates by 25 basis points this month. But Bitcoin ETFs broke their two-day inflow streak on Wednesday, with $43 million in outflows. Altcoins also fell into the green zone in anticipation of an imminent rally.
Analyst Miles Deutscher discusses four major sectors of altcoins in his latest video: Layer One (L1) coins, meme coins, real-world asset (RWA) coins, and AI coins.
Does Solana have greater potential than Ethereum?
Analysts identify Solana (SOL) as the best L1 pick in this cycle. While it may seem like a predictable pick, Solana is seen as a reliable option that can deliver consistent performance throughout the current cycle.
From a technical standpoint, Solana is at a significant support level around $120. If this support holds, the stage could be set for a rebound. However, if it falls below this level, the next significant support is $97, which corresponds to the previous breakdown point in 2021 and 2022.
Victory Meme Coin
The analyst has listed Whiff and Pepe as top picks. Whiff, a meme coin from the Solana ecosystem, saw a big rally early this year but has recently been weak, with a key support level at $1.40. Pepe, which is linked to Ethereum and is famous for the Pepe frog meme, has continued to perform strongly despite market volatility and could potentially generate gains if the Ethereum ecosystem recovers.
Will Real Assets (RWAs) Soon Become the Market’s Attention?
The analyst said there are only a few major options in the RWA space. The analyst believes Mantra (OM) stands out as the strongest candidate in the RWA sector due to its interesting narrative and price action.
Ondo is also fundamentally strong, but the upcoming major unlocks could negatively impact its price performance. Mantra is therefore preferred due to its more favorable price trend and narrative stability.
AI Tokens Lead Recovery Rally
The analyst believes that AI is a leading sector with high recovery potential even after the recent downturn. Render Token (RNDR) is his top pick because it focuses on infrastructure, has shown resilience to price fluctuations, and benefits from a halving supply mechanism similar to Bitcoin.
NEAR Protocol is mentioned as a strong alternative given its role in AI data solutions and good price responsiveness. World Mobile Token (WMT) is also highlighted as an underrated deep tech project with growth potential that is expected to be launched on major exchanges.