The Most Important Chart In Crypto

Louis Sykes
November 9, 2021

Things are shaping out really nicely for crypto right now, and the evidence suggests it's only getting started.

Crypto bull markets are seriously no joke, and we wouldn't be surprised to see a lot of these names multi-bag over the coming months and quarters.

But despite how well things are looking, it's vital to remain humble and level-headed throughout it all.

The old saying that "don't confuse brains for a bull market" is particularly relevant here, and is the epitome of the laser eyes crowd. Any idiot can buy a coin that moons in a crypto supercycle, but not everyone can successfully manage risk and their emotions.

"I don't know" is always the right answer.

So despite how well things are shaping out, always try to stay humble and level-headed.

The Most Important Chart In Crypto

We've been saying it for a while; this is the single most important chart in all of crypto right now.

If the Top 5 Crypto index is above its first-half highs, we need to be very aggressively long.

We're not talking about micro-cap shitcoins, these are truly the mega-caps of the asset class, and if they're moving higher, everything else underneath is likely to follow suit.

The Dinosaur Rotation

All the old dinosaur coins that were pumped in the 2017 bull market have been some of the worst names in the modern environment with all these new and exciting protocols like Solana, Avalanche, Harmony, and many more.

2017 was a year marked by scams and terrible altcoins, and most names born in this period have suffered ever since. Coins like Litecoin, ZCash, Dash, VeChain etc.

But (and this is a big but), we do need to give them the benefit of the doubt with their performance over the last few sessions.

Litecoin doesn't look too bad for a historical laggard.

And notice the failed breakdown relative to Bitcoin.

If Litecoin is above 235, we can be long with a target of 410.

Dash looks similar.

Above 215, we can be long.

If ZEC is above 180, we can be long with a target of the first half highs of 340.

The bias is higher for VeChain if it's above 0.15 with a target of 0.27.

We want to clarify that any long positions in these coins should remain a smaller portion of our total allocation, given they are historical laggards and there's no shortage of great protocols showing much better long-term relative strength.

But I don't see anything wrong with taking a swing at a tactical long in some of these names right now.

Weekly Chartbook

You can download this week's chartbook by clicking the link down below:

Click here to download this week's chartbook.

Be sure to fire us a line if you have any questions.

Allstarcharts Team.

 

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