According to TechFlow on June 16, 10x Research released a report stating that the top ten cryptocurrencies by market capitalization have continued to change over the past decade. The report argues that this shifting structure shows why simply holding altcoins for the long term is not the best strategy, and why momentum trading plays a more important role in altcoin allocation.
The firm outlined a risk-management rule based on moving averages. If an altcoin remains above its 6-month or 12-month moving average, investors can maintain a bullish stance. Once the asset falls below those moving averages, the report says positions should be reduced decisively. This framework links trend-following signals with position control in a market where altcoin rankings and performance keep rotating.
Using a dual screening framework that combines fundamental catalysts with risk-management standards, 10x Research said it has currently identified six altcoins with strong bullish catalysts that also meet its risk criteria. The report added that historical data shows such a selected basket has the potential to significantly outperform Bitcoin.