In our latest Kraken Trading Spaces, Dentoshi unpacked one of the most valuable edges in trading: Spotting outperformers before the rest of the market does.
With the crypto markets in a period of chop, earnings season heating up and broader macro catalysts in play, Dentoshi shared timely insights on how to identify early winners before they start to fly.
Here are the key takeaways from our conversation.
Pick Winners in a Fast-Moving Market w @dentoshi https://t.co/ZbfQ8q09VN— Kraken (@krakenfx) July 31, 2025
Why early outperformance matters
Outperformance isn’t just about being in the “hot coin” once the party is in full swing. According to Dentoshi, true trading edge comes from spotting signs of strength early, when the broader market is still uncertain or sideways.
“The coins that move the earliest often carry that momentum into the next rally – if there is one. This is the prep work you want to be doing now.”
Even in times of chop or consolidation, early signs of strength can help position traders for high-conviction opportunities.
What makes an outperformer
There’s no single formula, but the ingredients Dentoshi watches for include:
- Timing and relative strength: Look for assets moving earlier or stronger than their peers
- Narrative momentum: Themes driving attention — like memes, infrastructure plays or regulatory tailwinds
- Fundamentals vs. price gaps: Assets with strong fundamentals but lagging price action
- Chart structure: Reclaims of key levels, clean EMAs and high-quality breakouts
Layer 2 category +9%
⚫ $MNT +20%
🔴 $BIT +10%
🟣 $POL +7%🖱️ https://t.co/PjsPpyN0oA pic.twitter.com/Ih8wWBFQUg
— Kraken Pro (@krakenpro) August 5, 2025
A recent example? Ethena. Despite ENA‘s strong fundamentals, it lagged due to token unlock pressure. Once unlocks eased and the team announced a $360M buyback fund, the chart flipped from rangebound to one of the week’s top performers.
The memecoin factor
While traditional fundamentals (roadmap, team, tokenomics) still matter, Dentoshi emphasized that attention is a fundamental in its own right, especially in today’s market. Memecoins that dominate attention can deliver outsized gains even if they lack “typical” fundamentals.
“This cycle has more dilution than ever. If a coin cuts through that noise and grabs attention, that is a fundamental edge.”
The importance of sector leadership
Within hot narratives, Dentoshi suggests drilling down to identify the category leaders; those showing clean breakouts and sustained volume.
Using Kraken’s heatmaps or similar tools, traders can segment coins by themes (e.g., L1s, memecoins, stablecoins) and isolate the leaders driving the story.
“If you want to bet on outperformance, bet on the strongest horse in the hottest race.”
A case study: SUI in summer 2024
One standout example was SUI in mid-2024. As the market languished in a months-long downtrend, SUI began quietly reclaiming major levels while peers struggled. Dentoshi took early positions and scaled in as the move confirmed.
Altcoins: Early vs Certain
Can we go lower? Of course, but there is definitely something to say for Team Early here:
* Most alts down -80%
* Sentiment horrendous
* Range/downtrend for months
* Outside interest in crypto mehLike i said in previous posts, early buyers are the… pic.twitter.com/xNKoJg1ulh
— Dentoshi (@Dentoshi) September 8, 2024
Key entry signals included:
- Attempts to reclaim major resistance
- Early strength against the trend
- EMAs flipping bullish ahead of the market
Team early 🙃 $SUI
Shows importance of keeping focus on first movers.
Therefore think this will be one of the first to break ATH’s. https://t.co/oXkZMcXdwA pic.twitter.com/nom6BED5Ni
— Dentoshi (@Dentoshi) September 26, 2024
Early entry vs. confirmation
Dentoshi’s take? You don’t need to go all in at a single moment. Blending early conviction with confirmation-based adds can create optimal entries.
“It doesn’t have to be a full send. You can scale in early, then build size as confirmation comes. Mix and match, no need to YOLO.”
She emphasized using journaling and self-reflection to understand whether early or confirmation entries suit your personality and trading style best.
When to exit: Signs to rotate or take profit
Holding a winner too long can turn it into a loser, so what are Dentoshi’s top exit signals?
- Loss of trend: Watch for breakdowns in key EMAs
- Overextension: If a chart looks too vertical, it might be exhausted
- Narrative overheat: When everyone’s talking about it, it might be time to trim
- Leaders showing weakness: If top performers falter, broader weakness may follow
The ultimate checklist
To wrap up, here’s Dentoshi’s high-level checklist for spotting early outperformance:
- Look for assets that move different and move early
- Track narratives and find the strongest within hot categories
- Watch price vs. value disconnects
- Monitor EMAs and structure for clean momentum
- Exit when trends break, assets overextend or narratives peak
Final thoughts
Outperformance doesn’t appear out of thin air. It often builds slowly and quietly, and favors traders doing early prep work. With macro uncertainty and sideways price action, now is the time to build your watchlist and sharpen your edge.
Want more? Catch up on the previous Trading Spaces sessions here and here. Stay tuned to @KrakenFX and @Dentoshi for updates on the next episode.
