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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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XRP Price to $27? Expert Predicts Exact Timeline for the Next Massive Surge

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Crypto expert Egrag Crypto has again predicted that the XRP price could rally to as high as $27. The analyst has also revealed the exact timeline for when the altcoin could record this massive price surge.

Expert Reveals Time For XRP Price To Hit $27

In an X post, Egrag Crypto asserted that the XRP price can hit $27 in 60 days. The expert remarked that historical patterns indicate that the altcoin can reach this target within this timeframe.

ImageImage

Based on this price prediction, XRP could reach this $27 target by June, marking a 1,250% gain for Ripple’s native crypto. The expert’s accompanying chart showed that he was alluding to the 2017 bull run as to why the altcoin could record such a parabolic rally.

In 2017, XRP recorded a historic gain of over 60,000% as it rallied to its current all-time high (ATH) of $3.8 the following year. As such, based on history, a 1,250% increase is nothing for the altcoin.

In the meantime, the XRP price still boasts a bearish outlook thanks to the sentiment in the broader crypto market. As CoinGape reported, Ripple’s coin could drop to the next major support levels at $1.79 and $1.56 if it fails to hold above $2.03.

Decision Time For The Altcoin

In an X post, crypto analyst CasiTrades stated that it is decision time for the XRP price. She noted that the altcoin is showing strength with a bounce right back to the first key test at $2.17. She added that this is the resistance level she wants to see flip into support, as it might be the “most important price of the week.”

ImageImage

The analyst stated that XRP must reclaim this level to build momentum. She added that the $2 level remains a valid target if the $2.17 level rejects. Meanwhile, CasiTrades revealed that $2.70, $3.05, and $3.80 are the major resistance zones once the upward trend is confirmed.

The analyst also mentioned that the XRP price is now fully inside the Fibonacci Time Zone 3, which spans most of April. She affirmed that this is the breakout window market participants have been preparing for and that all signs point to a macro wave.

CasiTrades affirmed that the structure is clean. The RSI divergence has confirmed the bottom, while the subwaves are aligning well with the larger targets. If the next leg pushes XRP back above $2.17 with momentum, she claimed that market participants may finally see obvious signs of Wave 3. Interestingly, the analyst added that if the altcoin clears $2.70 this week, it may break the $1,000 price extension.

For now, investors may remain cautious, especially seeing how XRP fell after the PMI and JOLTS data release earlier today. Donald Trump is also set to announce reciprocal tariffs tomorrow, which could spark a massive price crash.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several topics and niches. 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, a traveler 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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Binance Update Sparks 50% Decline For Solana Meme Coin ACT: Details

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A recent Binance update has triggered massive liquidations while sending Solana memecoin ACT into a steep correction. At first, pundits blamed market maker Wintermute for the jarring declines but Binance’s update to leverage and margin tiers appears to be the culprit.

Several Altcoins on Binance Suffer Massive Corrections

According to an X post, several altcoins listed on Binance took a major hit, dropping by double-digit percentages. The hardest hit of the lot was Solana memecoin ACT, experiencing a sudden drop of over 50% in 30 minutes.

Other altcoins including DEXE and DF equally recorded steep declines of 23% and 16% respectively in the same window. The price slump left traders scratching their heads but a consensus formed that sizable sell orders were behind the declines.

“The sudden dips were triggered by large sell orders executed in a short time frame, leading to a significant surge in spot trading volume,” said one pundit.

Others turned to market maker Wintermute as the trigger for the selloff. However, Wintermute CEO Evgeny Gaevoy denied responsibility while noting that the market maker reacted “post move.”

The decline comes amid a broader market recovery with several cryptocurrencies including Compound (COMP) gaining 70%.

What Triggered The 50% Decline For Solana Meme Coin

A Binance update on leverage and margin tiers on specific tokens like ACT triggered the massive declines. According to an April 1 announcement, the top exchange has updated the margin tiers of several perpetual contracts, noting that existing positions will be affected.

Following the move, one ACT whale got liquidated for $3.79 million at $0.1877, triggering a broad selloff. Former FTX community manager Benson Sun noted that traders had less than 3 hours to respond to the change, criticizing Binance for the move.

“Before changing the rules, Binance should have evaluated how many positions would be closed,” said Sun. “If there are market makers with large positions, they should have notified them in advance.”

Within hours of MUBARAK’s listing, the memecoin tumbled by 40% with Binance CEO Changpeng Zhao downplaying the impact of a listing on prices. Binance has drawn criticism in recent days following its exclusion of Pi Network from its Vote To List initiative.

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Aliyu Pokima

Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.

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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BTC, ETH, XRP, DOGE Fall Following Weak PMI, JOLTS Data

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A crypto market crash looks imminent, with Bitcoin, Ethereum, XRP, and Dogecoin witnessing notable declines. This price crash happened following the release of weak manufacturing PMI and JOLTS data, which provides a bearish outlook for the market.

Crypto Market Crash: BTC, ETH, XRP, & DOGE Decline

CoinMarketCap data shows that a crypto market crash could be on the horizon, with the Bitcoin price sharply dropping below $83,000 from a daily high of around $84,400. Altcoins such as Ethereum, XRP, and DOGE also witnessed sharp declines.

This market crash occurred following the release of weak ISM manufacturing PMI and JOLTS data. The March PMI data dropped to 49, below expectations of 49.5 and lower than the 50 recorded in February.

The US JOLTS job openings for February came in at 7.568 million, below the expected 7.690 million and lower than the 7.762 million recorded in January. These data add to several macro fundamentals that paint a bearish outlook for the market.

This crypto market crash could persist, with China, Japan, and South Korea agreeing to respond to Donald Trump’s proposed tariffs. Trump is set to announce a number of reciprocal tariffs tomorrow, which could significantly harm the market as it sets off a trade war between the US and other nations.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several topics and niches. 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, a traveler 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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