Top Altcoin Picks After a Market Dip: Coins Showing Relative Strength vs BTC

This article was first published on Deythere.

The recent crypto slump has been pushing investors to reevaluate their top altcoin picks. Altcoins have had a tough time in late 2025 market turmoil, straight into 2026.

Five altcoins with promising prospects (ETH, SOL, BNB, AVAX and XMR) based on the recent data are being observed. Risks are present during any Bitcoin bear flip so risk management is paramount.

Why Dips Reshape Top Altcoin Picks

Altcoin portfolios tend to be re-evaluated when markets pull back. Red altcoin charts usually mean rotation, not exit, according to Binance analysts: money simply goes back to the highest-quality assets (Bitcoin and Ethereum) first. 

In the meantime, weak alts are being flushed, and strong projects consolidate/get on with the business of quietly building relative strength. Put another way, the dip applies selection pressure: weak tokens without strong fundamentals or tokenomics collapse while projects that have good use and strong communities survive and become even stronger.

In Q2 2025, altcoins experienced drawdowns up to 31.3% on liquidity stress tests, nearly double Bitcoin’s 18.1% drawdown.

A lot of alts become a “liquidity desert” when volatility strikes, with sell orders easily overwhelming shallow order books. By contrast, large projects such as Bitcoin or Ethereum have deep liquidity, which can withstand shocks. 

As a consequence, capital tends to disproportionately flow toward these liquid assets during times of market duress and only those with real network usage sustain the interest of investors.

This dip-induced weeding-out can actually serve as a setup for the next rally. According to reports, many of the strongest altcoin rallies in history began after sentiment was extremely negative. 

When weak hands are shaken out and leverage is reset, a few remaining survivors with strong fundamentals can benefit from an outsized rebound. 

Overall, market corrections transform top altcoin picks by circulating capital into quality and exposing which projects can sustain downtrends.

Relative Strength: How to Spot It Quickly

One way to spot strong altcoins is by watching for relative strength, that is, coins that go up or fall less when the larger market is under pressure. As trader Dentoshi put it, “coins that move the earliest often carry that momentum into the next rally”. 

She suggests looking at the market for assets that are beginning to outperform their counterparts: say an altcoin that starts reclaiming important support levels or chart patterns earlier than most others. 

Santiment’s analysis reinforces this approach: assets that defy the general downtrend often have strength.  They note that in the December dip, Monero (XMR) was up 5% while Bitcoin and most alts were down, making XMR a “notable outlier”. 

Such strong outperformance suggests a strong narrative or accumulation by insiders. This means that traders look for coins that hold important zones or form bullish chart patterns even as others slide.

Another tactic is to focus on sector leaders within hot narratives. Dentoshi recommends identifying categories like smart-contract platforms and picking the strongest horse in the hottest race. 

For example, within layer 2 solutions, Optimism (OP) might be compared to its peers for technical setups. Through tools, such as heatmaps or scanners, one can instantly determine which alts are beginning to show greater strength early.

In other words, identifying relative strength quickly means watching out for coins that recover key technical levels first, or simply don’t drop as much as the crowd.

Liquidity and Spreads: Who’s Tradable, Who’s Not

It is essential to consider liquidity when considering top altcoin picks. High liquidity on deep order books and trading volume ensures traders can enter or exit positions without huge slippage or moving the price too much. 

Massive cap coins like BTC and ETH have the thinnest spread with deepest markets, while many low-cap alts have very poor liquidity. According to Kaiko, in periods of stress, the liquidity for altcoins can dry up, resulting in higher bid-ask spreads and large price jumps as well on minimal trades. This means that betting big on illiquid alts at the height of either a rally or renewed downturn is extremely risky.

As a practical matter, the top altcoin picks for trading are those that are already in the biggest market-cap brackets as they have plenty of volume and lots of market makers. For smaller alts, traders should look at the 24 hr volume and depth on major exchanges. Low volume or wide spreads which are visible in the orderbook, suggest that even a small wave of selling could result in a big price crash.

So it is advised to look for coins with proven liquidity after a market dip. This eliminates the risk of getting stuck on a quick move or paying an absurd amount of slippage. Make sure to check trading volume / orderbook depth etc. 

Strong volume confirms a healthy move, while low volume signals risk of reversal. To put it simply, traders must  ensure their  top altcoin picks have enough market volume to support the size of position they are considering.

Catalysts That Could Extend a Rebound

Technical reasons aside, fundamental catalysts dictate which altcoins rebound. Macro-level developments such as monetary policy easing and regulatory changes, for example, can impact crypto-wide sentiment. 

For example, analysts point out that potential Fed rate cuts and wave of crypto ETFs may pour more funds into digital assets. Grayscale, for instance, is anticipating U.S. crypto market regulation to come this 2026, which would open the way for additional institutional flows. 

On the project side, certain events can further propel individual altcoins. Key network upgrades, exchange listings and tokenomics adjustments are potential triggers. For instance, Ethereum’s recent “Fusaka” upgrade  which massively dropped the cost of gas on Ethereum, provide a technical improvement that some analysts have claimed makes for a new price floor for ETH. 

Other catalysts include surging sectors such as AI or gaming. Recently, real word asset-based protocols (eg., Ondo), Defi yield strategies or viral games (Tap-to-Earn tokens) have seen renewed interest. 

Even meme coins can soar if they manage to attract massive attention. In short, the top altcoin picks will be those with specific catalysts  in terms of technical improvements, broader use case or regulatory change which can drive a recovery rather than speculation alone.

Downside Risks if BTC Sentiment Flips

Investors need to be aware of the flip side. If sentiment turns bearish towards Bitcoin again, it could spell even worse for altcoins. Altcoins have always been fairly correlated with BTC on downtrends, as risk-off does not play out nice for speculative bets. 

In the event of a deeper market-wide selloff or sharp Bitcoin plunge, all altcoin catalysts could be overwritten, dragging even fundamental projects down. 

This risk means having to play defense during times of uncertainty. Even if an altcoin has a fantastic narrative, extreme market wide fear that envelops the entire market can drown out individual strengths. 

Technical levels such as key supports or volume patterns should be watched closely: if Bitcoin loses its key support for example, expect altcoins to fall right along with it. 

In other words, the downside risk for these top altcoin picks is all of them going down with Bitcoin if it comes crashing once again. Good position sizing and exits are really necessary.

Top 5 Altcoin Picks Right Now

Given the above, here is a list of five top altcoin picks that didn’t back down after the recent dip:

Ethereum (ETH): The leading smart-contract platform and biggest altcoin. Its fundamentals remain healthy, on-chain data indicate that ETH is being accumulated by large investors and network growth is at annual highs. Ethereum’s recent Fusaka upgrade (lower fees) also strengthens demand. Its high liquidity and continued popularization (DeFi, NFTs, etc.) puts ETH among the top altcoin picks after a market dip.

Solana (SOL): A high-speed blockchain featuring rapid, inexpensive transactions. Solana’s ecosystem is expanding in DeFi, gaming and social apps, following major reliability upgrades in 2025. Its ability to scale consumer applications and the more recent strides in stability also make SOL a contender if broader risk- on returns. 

Binance Coin (BNB): The utility token for the Binance blockchain and exchange. One of 2025’s top majors was BNB (+40% y/y). Its strength comes from Binance’s user base. Fee discounts on Binance lead to constant demand, and its low-fee, high-throughput chain keeps developers. The token has a deflationary mechanism (burn) too, which may help price, if activity maintains. BNB is a high-volume coin that has liquidity and use cases, justifying its place among top altcoin picks.

Avalanche (AVAX): A smart contract platform that is fast and home to many. The latest on-chain data shows that Avalanche’s network activity is up even though prices are down. Active addresses for AVAX, for example have spiked 242% since January 2026 and are now residing at all-time highs.

This “decoupling” of usage from price implies that real adoption is happening. While AVAX has been significantly sold down (84% lower than its October high), technically speaking, it holds the prospect of a bottoming (oversold RSI and bullish MACD cross). This makes AVAX an interesting choice if the recovery materializes.

Monero (XMR): The primary privacy coin. Monero has recently shown strength being up 5% during the late-2025 altcoin exit. As privacy coins tend to be jacked around by macro uncertainty or regulatory news, higher demand for anonymity could boost Monero. It’s technically solid and has historical outperformance (XMR up 136% in 2025) so it’s a high-conviction choice among privacy alts.

Overview of Top Altcoin Picks

Source: Crypto market data and analysis (CoinMarketCap)

Conclusion

Top Altcoin Picks that investors may want to look at following the market dip are low-risk and high-reward coins such as Ethereum, Solana, Binance Coin, Avalanche and Monero. 

Weaker tokens have been flushed out through the downturns of the markets, effectively shedding light on the ones showing relative strength. These quality alts have the liquidity to bounce well (tight spreads) and visible catalysts ahead (network upgrades, adoption narratives) that could drive said next bounce. 

But risks persist; a resurgent Bitcoin sell-off may send all altcoins lower. There is the need for investors to concentrate on the strongest projects with good liquidity and clear growth expectations. 

These top altcoin picks are those that offer technical strength along with strong on-chain fundamentals.

Glossary

Altcoin: A term that means “bitcoin alternative,” it’s any cryptocurrency that isn’t Bitcoin. It can be anything from Ethereum (ETH), to Solana (SOL) etc.

Liquidity: How easily an asset can be bought or sold without affecting the price. 

Spread (Bid-Ask Spread): The difference between the highest buy (bid) and lowest sell (ask) price on an exchange. Narrow spreads imply low liquidity and more effective trading; wide spreads suggest high liquidity and greater transaction costs.

RSI (Relative Strength Index): A technical indicator (0-100) used to gauge if an asset is overbought or oversold.

Whale: A term for a big investor who has a large amount of cryptocurrency. 

Frequently Asked Questions About Top Altcoin Picks

What is an altcoin?

Altcoins are simply all other cryptocurrencies apart from Bitcoin.

Why buy Altcoins after a market crash?

Opportunities can open up after a dip from capital rotation. Dips tend to clean out the weak coins bringing the stronger projects which consolidate. When Bitcoin calms down, “top altcoin picks”, that is those with relative strength and a catalyst, can recover even faster. 

How can one assess the strength of an altcoin fast?

Look for relative strength signals. Watch to see whether the coin retains its critical support levels, or moves up while others are down. Traders look at charts and indicators (such as RSI) to identify coins that move higher before the rest of the pack. Also compare size as a breakout with large volume is more reliable than one with weak volume. 

Why should one pay attention to liquidity and spreads while picking an altcoin?

Liquidity and narrow bid/ask spreads keep investors from trading with big slippage. High liquidity altcoins (ie top 10 market cap) allow investors to buy/sell in large amounts near the market price. Low-liqudity coins can move wildly on modest orders, causing poor execution..

What dangers do altcoins face when Bitcoin flips bearish?

Altcoins often fare even worse during steep Bitcoin pullbacks. Altcoins are thought of as riskier assets, and so a Bitcoin-led risk-off move can result in sharp sell-offs across the altcoin markets. 

References

Santiment

Binance 

Kraken 

Kaiko 

CryptoInsights 

CoinDCX 

AmbCrypto

Disclaimer: This article is intended for informational purposes only and in no way should be taken as financial advice. Crypto markets are extremely volatile; please be careful and always do your own research or consult a professional before investing.