A widely followed crypto analyst is diving into why some altcoins are defying the overall market downturn and breaking out against the trend.<\/p>\n
Crypto trader Micha\u00ebl van de Poppe\u00a0tells<\/a>\u00a0his 666,600 followers on the social media platform X that some altcoins have even gone \u201c3x\u201d during the market tumble.<\/p>\n \u201cMassive breakouts on altcoins as some are already pulling a 3x!<\/em><\/p>\n We can\u2019t deny the fact that altcoins are showing some momentum. The majors aren\u2019t following through, Bitcoin isn\u2019t following through, but small caps are providing some momentum.<\/em><\/p>\n How can you trade those?\u201d<\/em><\/p>\n To help illustrate his answer, Van de Poppe uses a perpetual swap contract, or PERP, as an example. Perpetual swaps are financial instruments that enable traders to speculate on the future price of an asset without having to own it. They are similar to futures contracts, but unlike futures, they do not have an expiration date. As a result, traders can hold a perpetual swap position for as long as they want, until they decide to close the trade.<\/p>\n Looking at a chart of PERP, Van de Poppe can identify specific trends.<\/p>\n \u201cA massive uptrend since the beginning of the month resulting into continuation here. A rally from $0.40 towards $1.20, which might have peaked. That\u2019s something we don\u2019t know.\u201d<\/em><\/p>\n During PERP\u2019s upward run, Van de Poppe says he sees three clear concepts in Perp\u2019s price action that can be applied to trading smaller-cap altcoins:<\/p>\n \u201c1 \u2013 Breakout aggressive plays, which you can find in the chart as potential opportunities to trade and take a position from. Breakouts often lead to 10-20% movements here.<\/em><\/p>\n 2 \u2013 S\/R (support\/resistance) Flips of that breakout, which are also marked with green as a potential box and can result in a 10-20% bounce play as well.<\/em><\/p>\n 3 \u2013 Breakdown plays, which are more difficult as the trend remains to be upwards (in this case a short at $1.12 would have been hit, but most likely the take profit won\u2019t be hit as a reclaim of $1.12 is invalidation).\u201d<\/em><\/p>\n Van de Poppe says these three concepts can be applied to altcoin charts in the coming weeks.<\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>
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