As Bitcoin surges, potentially reaching a new yearly high, some altcoins are outpacing BTC and expected to keep doing so. Among them are Injective (INJ) and Render (RNDR).
For many retail and institutional investors, investing in and holding Bitcoin is the preferred strategy. Bitcoin is widely viewed as the most reputable cryptocurrency, serving as a store of value in a volatile financial landscape where stability is highly valued.
Considerations When Investing in Altcoins
Some traders and investors are willing to take on more risk to potentially capture significant gains. However, this poses a challenge for less experienced investors due to the heightened volatility compared to Bitcoin.
Altcoins often exhibit much higher volatility than Bitcoin. While BTC’s value rises, certain altcoins can surge even higher and faster due to their smaller market caps and lower liquidity. Conversely, when BTC declines, altcoins tend to experience sharper and more rapid drops, making the investment journey notably turbulent.
Despite the inherent volatility of altcoins, some have demonstrated less volatility compared to others. Notably, Injective Protocol (INJ) and Render (RNDR) have both consistently outperformed Bitcoin on average throughout the current crypto bull market.
Source: Coingecko/Trading View
Injective is currently within a significant bullish pattern known as a bull flag, which has been forming since December 23, 2023. If the price manages to break through the resistance at the $35 level, it would return to the top of the flag. A confirmed breakthrough at this level could potentially propel INJ to reach $60, representing a nearly 50% increase from its current price.
Comparing INJ and RNDR Performance to BTC
Source: Coingecko/Trading View
When comparing INJ to BTC, it’s worth noting that INJ has been on an uptrend since July 2022. The recent correction of around 30% experienced by INJ since December 23 might be reaching its conclusion, potentially leading to INJ outperforming BTC once again.
Source: Coingecko/Trading View
On the other hand, RNDR has shown remarkable performance, boasting over a 1,300% gain since January 2023, significantly surpassing BTC’s 221% gain over the same period. However, like BTC, RNDR encountered resistance at the 0.618 Fibonacci level, halting its upward momentum. Nevertheless, INJ experienced a 36% correction, which could be viewed as a healthier correction compared to BTC’s 21%.
Source: Coingecko/Trading View
In terms of the RNDR/BTC pair, RNDR has seen a substantial 715% gain against BTC since May 2022, with an additional 305% gain from January 2023 to date. Currently retracing back to support levels, RNDR may be poised to resume its upward trend.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News
