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Cryptocurrency trading expert Michaël van de Poppe updated his position trading strategy in the crypto market and mentioned the cryptocurrencies he is currently invested in as Bitcoin (BTC) prepares for new highs.
In a video posted this Sunday, August 25, van de Poppe presented his outlook on the market. The CIO and founder of MNCapital set the conditions for an incoming bull rally and navigated through altcoins to buy.
By recording time, BTC had yet to break out of the “range lows,” between $61,000 and $62,000. The trader explained this was a key level to validate a rally to the leading cryptocurrency’s all-time high. A condition already met following Jerome Powell’s speech at the Jackson Hole Symposium.
Next, he explained how a dominating bearish sentiment had made Ethereum (ETH) plummet against Bitcoin, with ETH/BTC reaching lows. This, however, is expected to change now that the sentiment shifts, which can start an altseason, rewarding altcoin investors.
DeFi as a narrative to back his crypto strategy
MNCapital’s CIO then highlighted decentralized finance (DeFi) as a powerful investing narrative for this cycle within the Ethereum ecosystem. He mentioned previous DeFi surges happening after traditional finance institutions experienced issues like Signature Bank and Silicon Valley Bank crashes.
Therefore, Michaël van de Poppe claims to already hold positions on some key DeFi altcoins in the Ethereum ecosystem. Opposing what some may think, Aave (AAVE) is not among his picks despite it “has been doing very well.”
The trading expert likes Aave’s value proposition but believes there are more asymmetrical opportunities in the market to explore. Nevertheless, van de Poppe believes investors can learn from Aave’s performance by looking at the fundamentals that likely caused it.
In particular, he is looking at the total value locked (TVL) in the protocol in comparison to the cryptocurrency’s capitalization. Conversely, Michaël mentioned Ondo (ONDO) as a hyped altcoin that does not meet the criteria and is currently looking overvalued.
Michaël van de Poppe’s top altcoins to buy
When applying the above crypto strategy to the Ethereum ecosystem, the executive was able to find some promising projects.
“If you know that, you can look at other projects within the Ether ecosystem that might be interesting to look at because investors are looking for cases where something is undervalued, where there is a revenue generation model, and where there is some sort of easy way of making a return.”
– Michaël van de Poppe
For example, Compound Finance (COMP), with a market cap of $400 million and a TVL of $2 billion. Moreover, Michaël van de Poppe mentioned other altcoins following this same criteria, although disclosed they are newer and smaller coins, with higher risks but higher expected rewards – like Rocket Pool (RPL) and ether.fi (ETHFI).
Despite the promising outlook, investors should avoid blindly following “top picks” from other traders. It is crucial to learn how to build their strategies and do proper research before buying cryptocurrencies or other assets.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.