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September 27, 2024

Analyst Jamie Coutts Says Fourth Quarter Could ‘Get Wild’ for Crypto, Updates Outlook on Solana Rival Sui

By Daily Hodl Staff

Real Vision analyst Jamie Coutts believes that the crypto market could finish out the year with strong rallies.

Coutts says that the TOTAL3 chart on the weekly timeframe appears to be breaking out of a descending trend line and printing a bull reversal pattern.

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The TOTAL3 chart tracks the market capitalization of all crypto assets excluding Bitcoin (BTC), Ethereum (ETH) and stablecoins.

“Zoom out on the weekly log chart:

  • Total market cap excluding BTC and ETH, aka ‘Alts,’ are breaking out.
  • Total market cap excluding BTC and ETH/Total market cap is basing.

Crypto Q4 could get wild.”

Source: Jamie Coutts/X

Looking at his chart, the analyst suggests that TOTAL3 is breaking out from a rounding bottom pattern. The technical formation is often viewed as a bullish reversal pattern as it indicates that investors have accumulated the asset without allowing the price to move lower.

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Next up, Coutts says there are reasons to be long-term bullish on Solana (SOL) competitor Sui (SUI), including the fact that the layer-1 (L1) project received a massive inflow of capital in 2024.

“Crypto capital flows are favoring Sui. Sui’s net flows this year hit $737.6 million, second highest among Alt-L1s after Solana’s $1.1 billion. On a relative basis Sui’s inflows are 18% of its market cap, while Solana’s are 2% – a 9x difference! Ethereum leads outflows across the crypto ecosystem, mainly to L2s (layer-2s), but some capital is spilling over to other L1s. Sui is the top recipient, with 92.9% of its inflows bridged from Ethereum and 5.3% from Solana. Net flows are akin to a blockchain network’s capital account – increasing net flows signals competitiveness and confidence, much like a nation’s capital markets.

A tenuous analogy: Ethereum is the US (property rights, the rule of law, deepest capital market), Solana is China (rapid growth, more centralized, degen traders), and Sui is the up-and-coming player, like South Korea or Singapore in the 2000s. It’s got the tech but is still building its capital markets and diversifying its economy.”

Source: Jamie Coutts/X

Sui is trading for $1.68 at time of writing, down 2.1% in the last 24 hours. With a market cap of $4.5 billion, Sui is the 28th largest crypto project.

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Featured Image: Shutterstock/Ongky Ady Widyanto/Vladimir Sazonov

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