Top Altcoins to Watch Now: XRP, HYPE, ZEC and SOL as Altcoin Rally Builds

The altcoin market is showing fresh strength after months of weak performance, but analysts are still waiting for stronger confirmation before calling it a full-fledged altseason. The altcoin market cap jumped $215 billion, or more than 24%, between August 19 and 22. 

According to analyst Darkfost, the rally has reversed a long period of inactivity when around 80%-85% of Binance-listed altcoins were trading below their 200-day moving averages. He sees the scale of the move as an early altseason, but says the market is now looking overbought and sees a short-term pullback. Looking at the current sentiment, another crypto analyst Known as Crypto kid is also bullish on selected altcoins but says traders should not mistake the current rally for a confirmed altseason. Here are the few altcoins he is watching.

XRP Remains the Top Pick

XRP stands out as the top altcoin pick after its strong recent recovery.

• The current indication is the falling-wedge formation, followed by a multi-cycle retest and bullish pennant.
• A double-candle reversal then provided another bullish sign. From around $1.16, XRP rallied roughly 39%-40%, while the move from the original signal reached about 45% at its peak.
• However, XRP is now facing major resistance around the neckline of a large double-top formation connected to its 2021 bull-market highs.
• The analyst is holding his spot XRP for the long term but says traders using leverage should consider taking profits after such a sharp move.

Hyperliquid Gets Strong Fundamental Support

Hyperliquid (HYPE) is another major project on the analyst’s radar.

• At present HYPE is one of the strongest projects in the market because its business model generates revenue that can directly support the token through repurchases.
• Institutional investors have also shown strong interest in Hyperliquid.
• Moreover, President Trump recently announced that HYPE can potentially become available for US perpetual derivatives trading, with Mike Selig mentioned as working on the possibility.
• If access to the US market expands, higher trading activity may increase Hyperliquid’s revenue and potentially create additional token-buying pressure.

Zcash Gains Momentum After Breakout

Zcash (ZEC) has also emerged as a trading opportunity after breaking out of a bullish pennant.

• The analyst believes Bitcoin generally leads major market moves before capital rotates into altcoins.
• Zcash remains the standout altcoins this cycle, surging above $850 and gaining over 70% in a week, its highest level since 2018.
• Meanwhile, Grayscale made two Zcash ETF filings in August, while a DCG subsidiary is discussing contributing around 200,000 ZEC to the fund.
• While he does not strongly favor Zcash from a fundamental perspective, he sees the technical breakout as an opportunity worth watching.

Solana Eyes $150 After Key Breakout

Solana (SOL) is showing a setup that the analyst compares with its 2023 price structure.

• SOL has consolidated after a period of weakness and is now approaching important EMA resistance.
• A confirmed weekly breakout above around $98 possibly builds the setup.
• If that level is successfully reclaimed and held, the analyst sees $150 could become a realistic next target.
• He is accumulating SOL through spot holdings rather than leverage, given the volatility across altcoins.

Is Altseason Finally Here?

Not yet, according to the analysts. Bitcoin dominance remains around 59.69%, while Ash Crypto says a sustained move below 58% would provide stronger confirmation of a broader altcoin rotation. The Altcoin Season Index is at 48, well below the 75 threshold generally associated with altseason.

Darkfost sees the recent rally as an early movement, but the market may need to cool before another major move. If Bitcoin continues higher and capital starts rotating more consistently into altcoins, the current rally could develop into a broader altseason.