Analyst Jamie Coutts from Real Vision believes that the cryptocurrency market has the potential to close the year with significant rallies.
Coutts indicates that the TOTAL3 chart on a weekly timeframe seems to be breaking out from a descending trend line and is forming a bullish reversal pattern.
The TOTAL3 chart monitors the market capitalization of all cryptocurrencies, excluding Bitcoin (BTC), Ethereum (ETH), and stablecoins.
“Looking at the weekly log chart:
- The total market cap without BTC and ETH, referred to as ‘Alts,’ is experiencing a breakout.
- The total market cap excluding BTC and ETH compared to the total market cap is consolidating.
“The crypto landscape in Q4 could become quite exciting.”
Upon analyzing his chart, the analyst believes that TOTAL3 is emerging from a rounding bottom formation. This technical pattern is often interpreted as a bullish reversal, suggesting that investors are accumulating the asset without driving the price lower.
Following this, Coutts argues that there are solid reasons to remain long-term optimistic about Sui (SUI), a competitor to Solana (SOL), particularly noting a substantial influx of capital into the layer-1 (L1) project in 2024.
“Crypto capital flows are leaning towards Sui. This year, Sui’s net flows reached $737.6 million, making it the second highest among Alt-L1s, only behind Solana’s $1.1 billion. Relative to its market cap, Sui’s inflows represent 18%, whereas Solana’s account for just 2% – a 9x disparity! Ethereum is witnessing outflows throughout the crypto ecosystem, primarily moving towards L2s (layer-2s), though some capital is transferring to other L1s. Sui is the largest beneficiary, with 92.9% of its inflows coming from Ethereum and 5.3% from Solana. These net flows resemble a blockchain’s capital account – an increase in net flows indicates competitiveness and confidence, similar to a country’s capital markets.
A loose analogy: Ethereum represents the US (property rights, rule of law, most developed capital market), Solana is akin to China (rapid growth, more centralized, speculative traders), while Sui is the emerging player, comparable to South Korea or Singapore in the 2000s. It possesses the technology but is still developing its capital markets and diversifying its economy.”
Sui is currently priced at $1.68, representing a 2.1% decrease in the past 24 hours. With a market capitalization of $4.5 billion, Sui ranks as the 28th largest cryptocurrency project.
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Featured Image: Shutterstock/Ongky Ady Widyanto/Vladimir Sazonov
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