As altcoins begin to show momentum, the SSR Oscillator continues to sit at cycle lows. This indicates that a large supply of liquidity could be deployed into the market soon.
Summary
- The Stablecoin Supply Ratio (SSR) Oscillator sitting near cycle lows suggests there is abundant liquidity waiting on the sidelines, which could fuel strong upward moves in Bitcoin and altcoins once a clear bullish trigger emerges.
- With latent capital ready to flow into the market, altcoins like Pi Network, XRP, and Zcash are showing signs of renewed strength which could be amplified by large liquidity flowing in.
According to data from Coinglass, the Stablecoin Supply Ratio Oscillator or SSR Oscillator continues to stand near cycle lows. Compared to the price of Bitcoin, which currently sits at $115,167, the SSR Oscillator sits just below $20,000 the mark after exhibiting a double-bottom on the chart.
When the SSR Oscillator remains near cycle lows, it often suggests that market participants are choosing to hold stablecoins instead of fully deploying them into Bitcoin (BTC) or other altcoins. It represents latent demand which could result in massive liquidity for the market if a clear bullish trigger appears.
Historically, SSR lows have preceded major bull runs or breakout phases, as traders rotate stablecoins into risk assets. This means that if a large amount of stablecoins were to rapidly enter the market in a major move, it could fuel sharp upward movement for Bitcoin and altcoins.
For the largest crypto asset by market cap, a low SSR indicates that upside liquidity is abundant. If BTC begins a strong leg higher the excess stablecoin supply could accelerate the move, potentially pushing Bitcoin to new cycle highs.
On the other hand, this environment could turn out to be even more favorable for smaller altcoins. Considering Bitcoin acts like a magnet for other tokens in the market, altcoins could see even stronger gains as capital spreads across the market.
Here are three altcoins that could skyrocket:
Pi Network
According to data from crypto.news, the Pi Network (PI) token has seen major gains in the past day. The altcoin has surged 24.7% and remains one of the highest gainers on the market so far. It is currently trading at $0.27, having risen from $0.20 before retracting slightly to just around $0.26.
This sudden breakout marks one of the token’s strongest moves in recent weeks, effectively breaking above its 30-day moving average at $0.2250, which has now flipped into a short-term dynamic support level.
The breakout signals renewed buying interest after a prolonged consolidation phase, likely driven by speculative anticipation surrounding future ecosystem or mainnet updates. With SSR near its cycle low, PI could benefit if a broader alt-rotation occurs as renewed market confidence returns.
XRP
Despite the dip in prices, XRP (XRP) has shown potential to rise above the pressure. Recent data shows that the altcoin has been on a rally since last week, rising by 5.6%. Market activity has also seen a significant increase, with the token’s trading volume experiencing a 20% boost compared to the previous day. The token’s trading volume currently stands near the $4 billion mark.
With a large pool of stablecoins at the ready, and XRP being relatively lower risk among alts, it may act as a “safe alt” to receive early flows from stablecoins once BTC begins to show strength. The lower SSR could indicate more buying power; therefore investors might prefer assets like XRP where risk is moderate and upside still significant. If the market enters a broad expansion phase, XRP could see strong participation.
Zcash
On Oct. 27, Zcash (ZEC) exhibited major gains following BitMEX co-founder Arthur Hayes’ prediction that ZEC could potentially reach $10,000. Hayes’ latest forecast appears to have reignited investor confidence in the privacy coin, fueling a wave of buying momentum leading to a breakout.
At press time, the altcoin has gone up by 16.4%, reaching as much as $356.68. In the past week, the token has risen by nearly 50% which indicates strong momentum. With the SSR oscillator near cycle lows, liquidity inflows could soon trickle down to smaller-cap privacy altcoins like ZEC.
Therefore, there is a possibility that ZEC could see enhanced upside if it breaks above its resistance levels as it already showing signs of breakout. On the other hand, if liquidity remains concentrated in large-cap tokens or risk remains muted, ZEC’s move may be muted.
