Ethereum's recent surge to a new all-time high has greatly impacted the altcoin market. Many tokens are oversold, creating interesting opportunities for investors.
Sui (SUI): Echoes of a Previous 800% Rally
Sui’s charts show extreme oversold conditions when priced against ETH, even more so than during its July 2024 bottom. Back then, SUI dipped slightly lower before staging an explosive 800% rally within months.
The setup now looks eerily similar. On-chain activity remains healthy, and trading volumes remain strong, meaning that buyers are still active even during this dip. If history repeats itself, Sui could be one of the most dramatic rebounders in this cycle.
Avalanche (AVAX): A Familiar 600% Setup
Avalanche is flashing signs of déjà vu. Its ETH pair is at levels not seen since September 2023, a period that marked the beginning of a 600% run for AVAX. Oversold RSI means momentum is bottoming out, while liquidity on Avalanche’s DeFi ecosystem continues to grow steadily.
The parallels are striking, and if Ethereum stabilizes, Avalanche could once again mount a strong rebound.
Hedera (HBAR): A Quiet but Bullish Divergence
Hedera’s setup is slightly trickier. The token is showing bullish divergence on the weekly ETH pair, with the RSI moving higher even as price drifts lower. Historically, this pattern has preceded strong upside moves, such as in November 2024, when HBAR bottomed before soaring in the following weeks.
Still, concerns remain around relatively weaker trading volume compared to peers like Sui and Avalanche. The analyst warned that HBAR may put in one more lower low before a convincing reversal.
In light of Ethereum's growth, many altcoins are in oversold positions, opening potential opportunities for investors. Using examples from Sui, Avalanche, and Hedera, one can see how history may repeat itself, alongside some risks that need consideration.
