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Investing.com -- Wolfe Research is urging investors to broaden their exposure in digital assets, arguing that the time has come to rotate more meaningfully into altcoins.
After a strong run in Bitcoin and Ethereum, the broker’s analysts see growing momentum across the broader crypto market, with technical signals pointing to a potential breakout.
“The median coin we track is up 23% month to date as momentum has picked up across the board,” Wolfe’s Rob Ginsberg wrote in a Wednesday report.
Ethereum, in particular, has led recent gains, rising over 100% since April 20 as ETF inflows surged past $5.5 billion. Wolfe had already started recommending ETH exposure back in May when it began showing strength relative to Bitcoin.
Now, the firm sees signs of a broader trend reversal, with Ethereum trading near five-month highs against BTC.
Beyond ETH, altcoins are showing renewed life. XRP has surged 28% over the past month and is now outperforming Bitcoin year-to-date. Wolfe also flagged bullish technicals across names like Solana, Cardano, Avalanche, and Chainlink.
“A breakout through May highs looks quite likely,” Ginsberg said, describing recent action as a “gradual reversal” that suggests the altcoin space is gaining traction. Solana, for instance, appears “poised to run back to the May highs over coming weeks.”
Bitcoin, meanwhile, remains strong and is again trading near all-time highs. Wolfe doesn’t expect a meaningful pullback, noting that “overbought conditions have been known to stick around here during recent accelerations.”
Overall, the broker remains positive on BTC and ETH, but says investors should start shifting into smaller tokens.
“With that in mind we continue to recommend staying overweight BTC and ETH while starting to increase your Alt Coin exposure,” the note concludes.