Cryptocurrency analysts are actively reviewing specific altcoins to strategically position their portfolios. This rebalancing is taking place as Bitcoin (BTC) moves around the $68,000 level.
Generally, the bullishness in the Bitcoin market affects altcoins as capital flows into smaller market cap tokens.
Analysts have started recommending notable altcoins for the fourth quarter
Popular cryptocurrency analyst Miles Deutscher has revealed a recommended portfolio of key altcoins in the AI-related and meme coin markets.
Deutscher sees Bittensor (TAO) as a frontrunner in the AI cryptocurrency space and positions it as a top holding for this cycle. He explains that TAO has seen strong performance in his portfolio due to the high interest in AI infrastructure.
Another core asset in Deutscher's portfolio is the NEAR Protocol (NEAR), one of the leading Layer-1 (L1) blockchains for AI. While TAO is leading the AI infrastructure space, NEAR has established itself as a key AI L1 solution, making it essential to a broader investment thesis. Deutscher also notes that NEAR's rise in the AI space is an attractive addition for those seeking diversification within the AI cryptocurrency realm.
Finally, Deutscher emphasizes Aethir (ATH) as an important part of his portfolio among lower market cap assets. He points out that while there has been a lot of discussion around AI coins, the market has not yet experienced a full "AI season," and many assets remain undervalued.
Read more: Top 9 AI Cryptocurrencies by 2024
In his view, if the AI narrative gains more momentum, Aethir could have explosive growth potential. For now, he is cautiously accumulating at the bottom, expecting to realize substantial gains as AI coins become more widely adopted.
Dogecoin for high-risk, high-reward
Deutscher has also included Dogecoin (DOGE) in his altcoin strategy for the fourth quarter. The meme coin, which has already risen 25%, has seen a strong performance due to speculation around the possibility of Donald Trump's presidential run in 2024. Additionally, the support of cryptocurrency influencer Andrew Kang has further bolstered market confidence in DOGE as a speculative trade.
"One of the most interesting ways to express a 'Trump wins' trade might be to own DOGE. Not only do you get the high probability DOGE ETF, but the Department of Government Efficiency (DOGE) will be making headlines weekly and pushed by Trump," Kang mentioned.
Dogecoin remains a high-risk play, but Deutscher sees the potential to capture market hype during periods of heightened speculation. He advises that while speculative investors may consider DOGE, it should not make up a significant portion of an investor's portfolio.
According to BeInCrypto data, at the time of writing, DOGE is trading at $0.1338, up nearly 10% since the Friday session when trading began.
Realizing gains and reinvesting into Bitcoin
Another popular analyst, Michaël van de Poppe, is focusing on various projects. He recommends realizing gains from altcoins and rotating into Bitcoin. Michaël argues that older altcoins that performed well in previous cycles may not be able to replicate their past success.
He explains that newer altcoins have higher profit potential. Among the new projects, he highlights Renzo (REZ), which recently entered the Solana ecosystem. He also recommended Omni Network (OMNI) and Rocket Pool (RPL).
Michaël van de Poppe advises monitoring the uptrend and realizing profits when altcoin prices approach their previous highs. After realizing gains, he suggests reallocating to Bitcoin, Ethereum, or stablecoins, depending on the market conditions. This strategy allows investors to protect their profits while preparing for future adjustments.
Read more: Top 12 Altcoin Trading Exchanges in October 2024
The analyst also recommends a strategy of generating profits through new altcoins and gradually shifting those gains into safer and more established assets like Bitcoin and Ethereum. This approach allows investors to maximize returns while managing risk in the volatile market.
