The Black Monday-style plunge did not occur this week. Prices ultimately closed above the level of last Friday, and the fourth quarter is now seen as a quarter in which altcoins have performed strongly.

According to an analyst who tracks the cycles of altcoins, fear is still keeping many investors away from the market. Most people still expect that the gains in this cycle will be less than those in the previous cycle, and this lack of consensus, on the contrary, leaves room for a much larger rebound than expected.

What position is the market in currently?

• Bitcoin: After rising from $58,000 to $88,000 for the first time, it is currently consolidating between $80,000 and $83,000.
• Bottom: Based on the bullish divergence on the weekly chart, it seems that the bottom of Bitcoin has appeared, and this pattern is similar to what was observed in 2022.
• Altcoins: Many charts of altcoins also show the same divergence signals as those seen in the months before their previous breakthroughs.

This view holds that headlines about war, oil prices, or interest rates are not suitable as a basis for investment decisions, because the market often moves in the opposite direction to these concerns.

Avoid crowded trading

The biggest names in the current hottest narratives, including NEAR, Venice, and Zcash, have become consensus trades, with limited upside potential in the short term. Better opportunities lie in those tokens that continue to show fundamental growth, yet their prices remain stagnant.

Four narratives and corresponding targets

1. AI combined with encryption: Bittensor ( TAO )

Bittensor's ecosystem continues to expand, with income from subnets increasing steadily, while the token has been trading sideways for two to three years now. Even during the bear market in 2025, it managed to maintain its value relative to Bitcoin, which is one of the strongest performances in the crypto market. As the attention to AI grows, funds may shift from NEAR to Bittensor.

2. Proxy Economy: SUI

SUI has been selected as the target for the payment system used by AI's agent. Concerns about the upcoming token unlocking are considered to be somewhat exaggerated, as early investors usually hedge their positions in advance. The weekly chart of SUI has been showing a bullish divergence since the beginning of the year, and indicators for RSI and MACD have also started to turn upward.

Ethereum ecosystem: Optimism and others

The negative sentiment surrounding Ethereum mainly stems from its price, but the network itself has been steadily improving. ETH has been trading in the range of $2,000 to $4,500 for about five years now, and a breakthrough in this range could potentially drive the entire ecosystem stronger. Optimism has been mentioned as one of the Ethereum ecosystem tokens worth paying attention to.

Real-world assets: Plume and Ondo

In the topic of tokenization, Plume stands out. This token is breaking through the range it has maintained since November last year and is supported by a bullish divergence from MACD. Ondo is also mentioned as another option within the same narrative.

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