Altcoin Watchlist Reveals Strong Performers and Distribution Concerns

Cryptocurrency analyst Altcoin Sherpa has released his latest altcoin watchlist, highlighting seven tokens that are either strong performers or showing signs of distribution.

The list includes Hyperliquid (HYPE) as the top pick for its downside protection. HYPE is a revenue-backed token that provides fundamental support and can hold through choppy conditions, making it an attractive option for investors looking for stability.

Other notable mentions on the watchlist include Zcash (ZEC), which has risen over 100% in a single week but may be due for a pullback to around $480 before continuing its upward trend. Bittensor (TAO) is also expected to pull back to mid-high $300s before continuation, while NEAR Protocol is seen as a high-float AI L1 candidate with less sell pressure than newer projects.

However, Sherpa is cautious about TON and BIO due to unnatural price action and TWAP distribution mechanics. He has fully exited BIO and is waiting for a re-entry at around $0.04, while his position in TON is reduced with a trailing stop in place.