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
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.
There’s no single formula, but the ingredients Dentoshi watches for include:
Layer 2 category +9%
— Kraken Pro (@krakenpro) August 5, 2025$MNT +20%
$BIT +10%
$POL +7%
https://t.co/PjsPpyN0oA pic.twitter.com/Ih8wWBFQUg
A recent example? Ethena. Despite ENA‘s strong fundamentals, it lagged due to token unlock pressure. Once unlocks eased and the team announced a $360M buyback fund, the chart flipped from rangebound to one of the week’s top performers.
While traditional fundamentals (roadmap, team, tokenomics) still matter, Dentoshi emphasized that attention is a fundamental in its own right, especially in today’s market. Memecoins that dominate attention can deliver outsized gains even if they lack “typical” fundamentals.
“This cycle has more dilution than ever. If a coin cuts through that noise and grabs attention, that is a fundamental edge.”
Within hot narratives, Dentoshi suggests drilling down to identify the category leaders; those showing clean breakouts and sustained volume.
Using Kraken’s heatmaps or similar tools, traders can segment coins by themes (e.g., L1s, memecoins, stablecoins) and isolate the leaders driving the story.
“If you want to bet on outperformance, bet on the strongest horse in the hottest race.”
One standout example was SUI in mid-2024. As the market languished in a months-long downtrend, SUI began quietly reclaiming major levels while peers struggled. Dentoshi took early positions and scaled in as the move confirmed.
Altcoins: Early vs Certain
Can we go lower? Of course, but there is definitely something to say for Team Early here:
* Most alts down -80%
* Sentiment horrendous
* Range/downtrend for months
* Outside interest in crypto meh
Like i said in previous posts, early buyers are the… pic.twitter.com/xNKoJg1ulh— Dentoshi (@Dentoshi) September 8, 2024
Key entry signals included:
Team early$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
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.
Holding a winner too long can turn it into a loser, so what are Dentoshi’s top exit signals?
To wrap up, here’s Dentoshi’s high-level checklist for spotting early outperformance:
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.
The post Pro trader Dentoshi on how to spot crypto outperformers early appeared first on Kraken Blog.
