Altcoins
Altcoin Season 2024: 4 factors delaying the Altcoins rally
![Top Factors for delay In Altcoins Rally](https://tokentalk.top/wp-content/uploads/2024/04/Altcoin-Season-2024-4-factors-delaying-the-Altcoins-rally.jpg)
Altcoins are now active competitors in the cryptocurrency markets, providing investors with a variety of options beyond Bitcoin’s dominance. Although it is the leading cryptocurrency, Bitcoin, other alternative coins offer distinctive opportunities for growth and innovation. Nonetheless, altcoin surges frequently experience setbacks, leading investors to question the factors that influence these fluctuations. This article explores the main reasons for the delay in the altcoin rally.
1. Geopolitical tensions in the Middle East
The performance of Altcoins may be affected by various external factors such as global market sentiment, geopolitical tensions and macroeconomic events.
One of the predominant factors is the geopolitical tension in the Middle East, particularly the growing conflict between Israel and Iran which impacted the entire cryptocurrency market, including altcoins.
Usually, geopolitical conflicts generate uncertainties which result in increased market volatility. Investors respond to such events by moving their assets to safer investment havens. Therefore, the demand for riskier digital assets like altcoins is decreasing.
Additionally, geopolitical tensions can harm investor confidence. Concerns over escalating conflicts, cyberattacks and economic sanctions may prompt investors to become more cautious, leading to a sell-off in the crypto market.
After the incidents in the Middle East, the prices of Bitcoin and altcoins fell significantly. For example, on April 13, the price of Bitcoin saw a drop of more than 8.4%, following the Iranian attack on Israel. This led to globalization crypto market crashalso affecting altcoins.
2. The dominance of Bitcoin
Bitcoin dominates 53.21% of the cryptocurrency market, becoming the largest cryptocurrency by market capitalization. Investors may have become more cautious about investing in altcoins, losing confidence in the broader crypto market, following the decline in the value of Bitcoin, which fell 10% over the from last month.
Since it is recognized as the most established cryptocurrency, investors tend to focus on the performance of BTC. This diverts capital and attention away from altcoins. When markets fall, there is a tendency to shy away from risk, which causes the prices of altcoins to fall relative to Bitcoin.
Additionally, when the value of Bitcoin falls, it restricts new investments in the market and triggers negative sentiment in the market, thus affecting altcoins as well.
Historically, market circles have been driven by BTC price action, but currently the altcoin’s expected rally has been delayed due to BTC’s current underperformance.
3. Market cycles and timing
The cryptocurrency market is famous for its recurring patterns. Analysis of historical altcoin trends indicates that market cycles may become longer, which could delay the emergence of rallies compared to previous cycles.
Market cycles and timing play a crucial role in determining the performance and rally potential of altcoins. The current market downturn has left many altcoin traders with heavy losses, with over 85% of altcoins considered undervalued based on MVRV calculations. The market is waiting for the right moment to capitalize on these opportunities.
The altcoin market usually goes through phases during a bull market cycle, and it appears to be in the choppy phase, marked by uncertainty and reaccumulation after the Bitcoin halving. The altcoin market reflects the price movements seen in 2020-2021, although the timing is different, which could be attributed to the growth and innovation of the cryptocurrency sector.
The delay in the altcoin rally is linked to BTC price fluctuations. This implies that the altcoin season could be delayed until “digital gold” stabilizes in price or hits new highs, as claimed CrediBULL Crypto.
#Altcoins 2016-2017 vs. #Altcoins 2021-2024
There’s not that much difference, is there?
It just takes longer than it did back then. pic.twitter.com/F8ilHdEbFE
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) April 20, 2024
4. Market manipulation and whales
Cryptocurrency markets can be manipulated by influential holders, also known as whales, who have a significant impact on price movements. Whales have the ability to influence the market by coordinating their buying or selling, resulting in manufactured fluctuations and slowing the altcoin price surge. Additionally, the existence of pump and dump schemes and insider trading intensifies market manipulation, hindering the natural development of altcoins.
Whales have a significant influence on altcoin prices through their selling pressure, which impacts market sentiment and liquidity. Heavy whale sales can delay expected recoveries by causing sudden price declines and creating uncertainty. Conversely, strategic purchases by whales can temporarily drive prices up, only to fall again when they sell out. Whales can also spread fear or greed through the media, affecting traders’ decisions and causing erratic market behavior that delays potential rebounds.
For example, an unknown wallet transferred almost 25 million XRP tokens worth $14.75 million at cryptocurrency exchange Bitstamp on April 8, 2024. This large transfer sparked speculation within the crypto community and was attributed to the subsequent drop in XRP prices.
🚨 24,880,000 #XRP (14,752,878 USD) transferred from an unknown wallet to #Bitstamphttps://t.co/wdX27lI223
– Whale Alert (@whale_alert) April 7, 2024
Conclusion
Although altcoins present promising diversification and investment opportunities, their rebounds can be influenced by different factors leading to possible delays and fluctuations. For investors to successfully navigate the volatile cryptocurrency landscape, it is essential that they understand the fundamental factors driving the altcoin rally, such as market sentiment, regulatory uncertainty, technological advancements and the external dynamics of the market. By staying informed and conducting proper research, investors can improve their chances of taking advantage of the potential opportunities offered by altcoins while reducing the risks associated with delayed rebounds.
Altcoins
Best Altcoins for the Next Bull Cycle: Santiment’s Recommendations
![Best Altcoins for the Next Bull Cycle: Santiment’s Recommendations](https://tokentalk.top/wp-content/uploads/2024/07/Best-Altcoins-for-the-Next-Bull-Cycle-Santiments-Recommendations.webp.webp)
As Bitcoin (BTC) approached the $67,000 mark on Friday, the altcoin market, led by Ethereum (ETH)has shown strong bullish signals. Many altcoins are reaching the peak of a multi-week consolidation phase that began earlier this year. On-chain data also indicates that institutional investors have been actively buying crypto assets, preparing for the next phase of the bull market.
Additionally, several altcoins have recently retested the bullish breakout of the overall downtrend. With Bitcoin dominance set to decline, focusing on the altcoin market could be a smart move to maximize returns.
Expert advice: What should you pay attention to?
According to market intelligence platform Santiment, investors should keep an eye on the average trading returns of different assets.
After critically analyzing market data, Santiment believes that Shiba Inu (SHIB), Uniswap (UNI), Polygon (MATIC), Chainlink (LINK), Cardano (ADA), and Ripple-backed XRP are the best large-cap altcoins to buy now to maximize profits in the future.
Meanwhile, Santiment pointed out that Toncoin (TONNE), Bitcoin, Ethereum (ETH), and Dogecoin (DOGE) present a higher risk to maximize profits in the planned alternative season.
Market Outlook: Volatility Ahead?
With the Federal Open Market Committee (FOMC) expected to deliver its policy statements next week, increased volatility in the cryptocurrency market is likely. Furthermore, historical data suggests that August could bring a bearish trend for the sector.
Despite this, the cryptocurrency market is expected to turn bullish again in the fourth quarter, driven by the US elections and anticipated interest rate cuts.
Read also : Kennedy Jr. Proposes $615 Billion Bitcoin Investment After Election Victory
Invest smart. The future of cryptocurrencies is bright.
Altcoins
Analyst Says Ethereum-Based Altcoin “Looks Strong As Hell,” Outlines Path Ahead For Bitcoin And Solana
![Analyst Says Ethereum-Based Altcoin “Looks Strong As Hell,” Outlines Path Ahead For Bitcoin And Solana](https://tokentalk.top/wp-content/uploads/2024/07/Analyst-Says-Ethereum-Based-Altcoin-Looks-Strong-As-Hell-Outlines-Path.jpg)
A widely followed crypto analyst and trader believes a memecoin is headed for the next leg higher.
Pseudonymous crypto trader Altcoin Sherpa tell his 216,400 followers on the social media platform X that Pepe (PEPE) market fundamentals appear solid.
“PEPE: I never got a chance to add $0.00001111, but I’m still in it. He seems pretty strong. I’m still a big fan of memes in general.”
Source: Altcoin Sherpa/X
Pepe is trading at $0.00001128 at the time of writing, down 8% in the last 24 hours.
Then the analyst said Ethereum (ETH) rival of Solana (GROUND) has greater upside potential due to network activity.
“SOL: Go long on Solana. Why? Because SOL memes continue to take off and everyone is denominated in Solana. Being in the trenches of crap money really helps you understand this stuff better. I expect a pullback soon, but this would be the bottom to buy in my opinion.”
Source: Altcoin Sherpa/X
Looking at the analyst’s chart, he suggests that SOL could eventually reach $205.
Solana is trading at $166 at the time of writing, down 6.7% in the past 24 hours.
Finally, the analyst said that Bitcoin (Bitcoin) appears to be in an uptrend but could retest the $63,000 level.
“BTC: Price still looks pretty strong to me. If you really want a dip to get in, look for $63,000 around the 200 four-hour exponential moving average (EMA). For now, things should continue in my opinion.”
Source: Altcoin Sherpa/X
At the time of writing, Bitcoin is trading at $64,596, down nearly 2% in the past 24 hours.
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Altcoins
XRP, ADA, and Other Altcoins to Accumulate Ahead of Trump’s Nashville Speech
![XRP, ADA, and Other Altcoins to Accumulate Ahead of Trump's Nashville Speech](https://tokentalk.top/wp-content/uploads/2024/07/XRP-ADA-and-Other-Altcoins-to-Accumulate-Ahead-of-Trumps.webp.webp)
Bitcoin has recovered most of its losses from the week as traders eagerly await former U.S. President Donald Trump’s appearance at the Bitcoin 2024 conference in Nashville, Tennessee. Interestingly, Bitcoin gained over 1% today as Trump appears to have changed his stance on digital currencies this election cycle.
Analysts Buzz About Altcoins said that this week, crypto whales have been quietly accumulating several altcoins, showing confidence in their short-term potential despite recent performance declines. Here are the top altcoins:
Arbitration:
Current price: $0.72
Whale activity:Despite its significant decline since the start of the year, Arbitrum has seen an 87% increase in net inflow from large holders over the past week. This suggests that whales believe in the token’s long-term potential. Arbitrum, a Layer 2 scaling solution for Ethereum, aims to improve transaction speeds and reduce costs on the Ethereum network. The recent accumulation of whales could indicate confidence in its technology and future adoption.
XRP:
Current price: $0.59
Whale activity:According to Santiment, the number of addresses holding between 100 million and 1 billion XRP tokens has increased since July 23. This shows that the supply has increased from 38% to 40%, which is a sign of growing confidence among large holders. XRP has benefited from recent legal victories and market sentiment, making it an attractive option for whales.
Cardan:
Current price: $0.41
Whale activity:Cardano saw a staggering 10,878% increase in large holder inflows in a single day, surpassing the 5 billion mark. This indicates a significant level of confidence among whales in ADA’s recovery potential. Cardano’s recent upgrades and continued development have been positively received by the market, contributing to its attractiveness.
Chain link
Current price: $13.55
Whale activity: Chainlink recently integrated its Cross-Chain Interoperability Protocol (CCIP) with TrueFi on the Ethereum and Arbitrum blockchain platforms. TrueFi, backed by Coinbase and Chainlink, provides transparent and real-time financial data, improving the decentralized finance (DeFi) ecosystem. This integration could drive increased adoption and usage of Chainlink, making it a popular choice among whales.
Altcoins
Ethereum (ETH) ETF Fails to Spark Altcoin Season, Market Rebounds Above $1 Trillion
![Facebook](https://tokentalk.top/wp-content/uploads/2024/07/Ethereum-ETH-ETF-Fails-to-Spark-Altcoin-Season-Market-Rebounds.webp.webp)
The rebound in altcoin market cap to $1 trillion slightly changes the positive dynamics for the much-anticipated altcoin season in Q3 2024.
Bulls took control of today’s session, pushing the total cryptocurrency market cap to $2.39 trillion, up 4% in 24 hours at press time. Total trading volume stands at $82.2 billion, up 4.4% in 24 hours, at the time of writing.
The Ethereum ETF was supposed to be the flagship of the altcoin season, but the response so far suggests nothing in its favor.
Altcoin market cap is moving in a flag pattern, a steady rise above $1.56T could trigger the altcoin rally and lead to the altcoin season with favorable market conditions.
Ethereum ETF Potential Stabilizes
The Ethereum ETF got off to a strong start with $1 billion in trading volume on its first day with massive inflows and outflows. This activity attracted a lot of money to Ethereum but failed to circulate among other altcoins.
With the launch of Ethereum, market sentiments were poised to trigger the altcoin season, but the cooling volume of the ETH ETF and the distributed interest in the BTC ETF could not muster enough power.
While the price of Ethereum (ETH) is yet to react, experts predict that the price will see a massive surge between $4,000 and $7,000. At the time of writing, ETH is trading at $3,271 with a 24-hour growth of 3.08%.
Altcoin Season Indicator Kills All Hopes.
The required demand for the altcoin season has not been met by the cryptocurrency markets and this can be seen in the Altseason Season Index indicator which is below the threshold of 25.
A push above 75 will mark the start of altcoin season.
Source Blockchain Center
Furthermore, analyzing the performance of the top 50 assets in 90 days shows that only 11 of them have outperformed BTC.
To kick off the official altcoin season, at least 75% of assets must outperform Bitcoin.
An increase in inflows and the return of investors in September and October could potentially trigger the altcoin season we have all been waiting for.
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