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Altcoins Over Bitcoin? Analyzing the Potential of an Altcoin Season

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Over the last few months, altcoin prices have dropped 30% to 70%, leading analysts to write off the possibility of an altcoin season. But when equipped with new information, BeInCrypto finds that things may be about to change.

This analysis sheds light on the rationale behind the thought while offering insights into the potential catalysts.

Early Days But the Signs Have Appeared

Altcoin season is in a market phase where non-Bitcoin (BTC) cryptocurrencies register a consistent surge in value while outperforming the number one coin. 

One of the indicators validating this period is TOTAL2, which is the crypto total market cap, excluding BTC. When this market cap increases, it gives credence to the potential increase in the prices of altcoins.

However, a decrease implies that Bitcoin is dominating the market. At press time, the total altcoin market cap stands at $940.37 billion —  a 4.87% increase in the last 24 hours. The same market cap had initially dropped by 23.26% between June 6 and July 8.

Read More: Which Are the Best Altcoins to Invest in July 2024

Altcoin crypto market cap
Crypto Market Cap Excluding BTC Daily Chart. Source: TradingView

If the indicator’s value continues to increase, the altcoin season will be closer. The last time such occurred was between February and March. At that time, the value of TOTAL2 went from $753.83 billion to $1.24 trillion within a month.

Following the recent change, analysts on X seem to be changing their stance, favoring the dominance of altcoins. One of them is Michaël van de Poppe, founder of MN Trading. 

“The Altcoin market capitalization has reached a crucial higher timeframe support level and finds support here. It’s still early in the week, but if this week continues this upward trend, then the signs will start to improve.” van de Poppe opined on X.

Bitcoin Dominance Steps Back, May Open Doors for Altcoins

Apart from opinions, another factor that determines if altcoins’ time to shine is here is Bitcoin’s dominance. For the cycle to be validated, the BTC.D has to decrease.

Bitcoin dominance
Bitcoin Dominance Weekly Chart. Source: TradingView

Employing the weekly chart, we observe that the BTC.D fell from 62.69% in March 2021 to 40.89% in May of the same year. History shows that this was around the same period many altcoins hit their all-time highs in the last bull market.

This week, the dominance has fallen from 55.04% to 54.68%, indicating that some altcoins have begun to outperform BTC.

For this to mirror the performance shown in 2021, at least 75% of the top 50 altcoins have to perform better than Bitcoin.

According to data from Blockchaincenter, only a few cryptocurrencies, including meme coins, have done that. Some of them include Toncoin (TON), Pepe (PEPE), Kaspa (KAS) and Bonk (BONK). 

As a result, the Altcoin Season Index over the last 90 days remains at 29. However, this is an improvement from the reading a few days ago when it was 25.

Should the index continue to hit higher values, altcoins will get closer to retesting their all-time highs, putting BTC on the back foot in the process.

Read More: What Are Altcoins? A Guide to Alternative Cryptocurrencies

Altcoins price performance
Top 50 Altcoins 90-Day Performance. Source: Blockchaincenter

Ethereum, Solana’s Role Crucial

Additionally, it is important to mention that Ethereum (ETH) has always acted as a catalyst for fostering altcoin dominance. 

Within the last few months, ETH has underperformed compared to BTC. However, the impending approval of the spot Ethereum ETFs may spur a notable increase in ETH’s value. 

If this is the case, other altcoins may join the potential rally. In Capo of Crypto’s case, the update on the ETH ETFs, as well as the official applications for Solana ETFs by VanEck and 21Shares, is why the analyst is bullish on altcoins.

“Selling pressure from the German Government is being absorbed. All spot Ethereum ETF applicants have filed updated S-1s.VanEck & 21Shares have officially filed 19b-4s for spot Solana ETFs. I’m bullish for the next few weeks, especially on altcoins.” Capo of Crypto wrote.

Based on the analysis above and market sentiment, altcoins look like they are set for a big pump. However, traders need to keep an eye out.

If selling pressure hits the market again, the hike could be invalidated. Also, if Ethereum does not receive impressive inflows into the ETFs, the cryptocurrencies may struggle to jump.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Ethereum Foundation Launches Pectra Tesnet ‘Mekong’, ETH Price Set For $4000

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Ethereum Foundation on Thursday announced launch of its first short-lived Pectra testnet ‘Mekong.’ This testnet includes all the EIPs proposed for the upcoming Pectra upgrade on the Ethereum network. Will this trigger ETH price rally to $4000 as the price jumped 8% in the last 24 hours?

Ethereum Foundation Introduces Mekong Tesnet for Pectra

In an official announcement by Ethereum Foundation on November 7, the first short-lived Mekong testnet was introduced after scoping the Pectra fork and four DevNet events

The foundation said the Mekong testnet consists of all the EIPs proposed for the next major Pectra upgrade. It includes changes such as UX changes via EIP-7702, staking changes via EIP-7251, changes to the deposits and exit mechanisms via EIP-6110 and EIP-7002.

The Mekong testnet is focused on wallet developers to engage with UX changes and for stakers to gain confidence in the upcoming changes. This is a short-lived testnet but the features included will make it into existing public testnets and finally the mainnet.

In addition, Ethereum developer Tim Beiko reveals ethPandaOps has introduced this short-lived Pectra testnet Mekong to introduce major changes in mainnet. Also, this helps the crypto community try out EIP-7702, MaxEB consolidations, and more.

Moreover, Ethereum Foundation developer Parithosh recommended wallet teams to try Mekong testnet at the DevCon Week, which will run the entire week of November 9-17.

ETH Price to Hit $4000

Bullish sentiment surrounding Donald Trump’s win and DevCon event has triggered the rally. Moreover, the launch of the Mekong testnet to fuel ETH price further. Notably, analyst Benjamin Cowen predicted Ethereum price rally after a bottom formation confirmation in the ETH/BTC pair above the 50 DMA.

Popular analysts Michael van de Poppe and Ali Martinez said Ethereum is in the early bull run stage. With the Pectra upgrade expected to take place in early 2025, whales are likely to buy the dip. Michael van de Poppe suggested that the markets are rotating and ETH will see a massive pump. Notably, a higher-low formation will bring much-awaited upward momentum.

ImageImage

Also, Ali Martinez added that MVRV Momentum crossing its 180-day has historically signaled a period of outperformance for ETH price. The cross hasn’t happened yet and gives an opportunity to buy the dip for more upside ahead for the $4000 psychological level.

ETH price today jumped 8% to a 3-month high, with the price currently trading at $2,800. The 24-hour low and high are $2,611 and $2,878, respectively. However, the trading volume has decreased by 6% over the last day.

MVRV momentumMVRV momentum
MVRV momentum

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Varinder Singh

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Why Bitcoin Users Are Moving to Altcoins? As Ethereum Price Jumps 11%

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Although the Bitcoin price rally has paused above $75,000 a day after Donald Trump’s victory, altcoins have continued their strong show with the Ethereum price taking the lead with 11% gains all the way to $2,850 levels. Investors have a lot of questions as to does this mark the beginning of the much-awaited altseason moving ahead.

Altcoins Steal the Limelight from Bitcoin?

On the day of Donald Trump’s victory on November 6, the Bitcoin price touched its all-time high levels surging all the way to $75,000. While the bulls try to defend these levels, altcoins seem to grabbing the investors’ focus.

The Ethereum price has managed to pull off 12% gains moving all the way to the $2,850 level and eying further rally to its all-time high levels. This comes despite strong selling pressure from Ethereum whales. Popular crypto analyst IncomeSharks noted that the ETH price has given a crucial breakout from the downward trendline slope, which opens the gates for a 75% rally from here to new all-time highs.

Furthermore, after hitting the lower lows over the past few months, the ETH/BTC trading pair has notched up a bit. “With ETH/BTC at 0.035 it definitely makes sense to start hedging,” added Cowen. However, he added that for the bottom formation confirmation, the ETH/BTC pair must end above the 50 DMA.

Apart from Ethereum price surge, other altcoins like Solana made strong gains on Donald Trump’s victory. The Solana price has surged to $188 once again as talks about the approval of spot Solana ETF in the Trump presidency gain traction. As a result, analysts predict an SOL surge to $300 levels from here.

Will BTC Lose the Grip Over the Market?

Some market analysts state that it is still early to call the altseason and expect Bitcoin dominance to grow even further. Also, this could just be the beginning of the next major Bitcoin bull run.

Veteran trader Peter Brandt shared an optimistic outlook for Bitcoin, suggesting it has entered a “sweet spot” in the current bull market halving cycle. According to Brandt, Bitcoin is on track to peak between $130,000 and $150,000 by August or September of next year, marking a potential new high for the cryptocurrency.

Echoing similar thoughts, crypto analyst Ali Martinez noted that the next BTC top usually happens after 8 to 12 months following a monthly close above the previous all-time highs. Thus, he expects the next BTC top to happen anywhere between July to November 2025.

According to blockchain analytics firm CryptoQuant, Bitcoin’s recent all-time high doesn’t signal an overvaluation relative to its cost basis. The firm’s data on the MVRV ratio suggests that BTC remains well below peak levels. Additionally, Bitcoin’s price is close to traders’ average purchase cost, indicating that the market is not currently overheated. These insights point to the potential for continued growth in Bitcoin’s value.

Courtesy: CryptoQuant

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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XRP Price At Risk As Ripple Moves $250M?

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The XRP price has come under the spotlight following Ripple’s recent $250 million XRP transfer. This comes amid bullish predictions for the coin, with analysts saying that its price could enjoy a parabolic rally following Donald Trump’s win.

The XRP Price At Risk With Ripple’s $250 Million Transfer

The XRP price is at risk of a decline following Ripple’s transfer of $250 million worth of XRP to an unknown wallet. Onchain data shows that the crypto firm transferred 470 million XRP to this wallet (rP4X2…sKxv3). This unknown wallet has since transferred 100 million XRP to another wallet (rhWt2…E32hk).

The purpose of the $250 million transfer remains unclear. However, it could relate to Ripple’s On-Demand Liquidity (ODL) services or the ongoing SEC appeal case.

This development comes just a day after XRP whales moved $814 million, indicating whale accumulation. While the Ripple transfer is unlikely to impact the XRP price since it will likely be done over the counter (OTC) if it is a potential sale, it could still create a bearish sentiment among XRP investors.

However, crypto analysts are confident that XRP is currently in bullish territory following Donald Trump’s win in the US presidential elections. The coin could surge up to 3,336% as crypto analyst StephIsCrypto predicted a major above $2 following Trump’s victory.

A Price Surge Above $20 By Year-End

In an X post, Crypto analyst Amonyx made a bold prediction, stating that the XRP price will rise above $20 by year-end. In another X post, the analyst suggested that he was confident that this price surge would happen with the US SEC chair Gary Gensler set to be removed following Donald Trump’s victory.

Gensler’s removal is bullish for the XRP price because he has spearheaded the long-running legal battle against Ripple. The legal battle could have negatively impacted XRP all this time, creating doubts in investors’ minds.

However, with Gensler gone and the Ripple SEC lawsuit likely to end, investors could again become bullish on XRP and look to invest more in the crypto. Crypto analyst Ross Vandermeer also predicted that the XRP price could eventually rise to $1,000 thanks to Donald Trump’s US election victory.

Ripple CEO Brad Garlinghouse recently called on the US president-elect to fire Gary Gensler on day 1, just like he promised. Meanwhile, Ripple chief legal officer (CLO) Stuart Alderoty urged Trump to end the regulation-by-enforcement approach to position the US as the crypto capital.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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