Altcoins
Altcoin Season Hopes Rekindled By These 3 Top Altcoins
Just a few days ago, only six of the 50 largest altcoins were outperforming Bitcoin (BTC). But today, the situation has changed, fueling renewed speculation about an altcoin season.
The interesting aspect of this development is not only the addition of three new cryptocurrencies, but also the fact that the new entrants are all in the top 10 in terms of market capitalization. They include Solana (GROUND), Ethereum (ETH) and Ripple (XRP).
Is Rotation to Altcoins High Risk, High Reward?
It is important to note that altcoin season begins when at least 75% of non-Bitcoin cryptocurrencies outperform BTC. However, only nine of them achieve this, meaning that the period of altcoin dominance has not yet been confirmed.
As mentioned above, the performance of SOL, ETH, and XRP is boosting market confidence. Glassnode founders Jan Happel, Rafael Schultze-Kraft, and Yann Allemann also echo this statement.
Using their joint X account Negentropic, the founders of the on-chain analytics platform noted that rotation of capital towards riskier assets could soon start on the cryptocurrency market.
First, they compared the changes in the traditional market and used this as an inference for potential changes in the cryptocurrency market.
“Will we see this on BTC and Alts as well? Well, in November 2020 we had a day like yesterday. IWM shot up and continued to rise for the next few months. This was the starting signal for the strongest part of the Alt rally for the next 4 months, with Total3 up around 400% in just 4 months. Will we see the same thing again? Will the rotation create a massive rally in Alts? We think it might just happen!” Negentropic published July 12th.
Additionally, the entry of Solana, Ripple and Ethereum into the fold may be linked to their price development.
Over the past seven days, SOL price has increased by 9.31%, ETH has surged by 9.56%, and XRP has been the surprise winner with an incredible 21.97% rise.
Here’s how cryptos could fare as the much-anticipated altcoin season approaches.
Solana (SOL) Eyes Price Hike After 9% Surge
The current daily chart of SOL/USD shows that the altcoin has formed a symmetrical triangle. This chart pattern is characterized by converging trendlines that connect a series of lower highs and higher lows.
The lower highs act as resistance, while the higher lows act as support. Additionally, SOL price is looking to break out of the triangle. If this happens, Solana will break out of the consolidation phase and head towards a huge breakout.
Additionally, the Fibonacci retracement indicator identifies potential resistance and support points for the token. As seen in the chart below, SOL could rise towards $162.79 in the coming days.
Learn more: What is Altcoin Season? A Complete Guide
Solana Daily Analysis. Source: TradingView
This is where the 0.618 Fibonacci positions lie. If successful, this may lead the altcoin price to retest $174.59. However, in case of a pullback, SOL price may retrace back to $135.97.
Ethereum (ETH) Breaks Through Key Resistance, Holds at $3,622
At press time, ETH is trading at $3,360. The price is also trading above the 20-day EMA (in blue). EMA stands for Exponential Moving Average and measures changes in price direction over a given period of time.
If the EMA is above the price, it means that the trend is bearish. But since ETH is changing hands above the 20 EMA, it implies that the trend is bullish. Additionally, the Relative Strength Index (RSI) supports this bias.
The RSI measures momentum and since it is above the neutral line, it means that the bulls are in control of ETH’s movement. The proof is the breakout of the resistance at $3,255 and the defense at $2,946.
If the momentum remains bullish and the hype around the Ethereum ETF Launched If the selling pressure persists, the ETH price could reach $3,622. However, if the selling pressure kicks in, the ETH price could drop to $3,132.
Ripple (XRP) breaks out of descending channel
Initially, XRP encountered a multi-month descending channel, with falling trendlines connecting lower highs and lower lows. However, analysis shows that altcoin exploded After the purchase, interest intensified to $0.42. This then led to the token rising to $0.53.
At the time of going to press, the Money Flow Index (MFI) reveals that the strong demand for XRP remains present. Therefore, it is not out of the question to expect a price increase to $0.55. If successful, the price of XRP could reach $0.57.
Learn more: 11 Cryptos to Add to Your Portfolio Before Altcoin Season
However, the $0.57 price point is crucial for the token, especially since it has been rejected multiple times at this point. If the bulls break through the resistance, Ripple could look to reach $0.60. However, another rejection at this point could force the price back to $0.52.
Overall, it seems like the altcoin season for this cycle is getting closer by the day. However, market traders should keep an eye on Bitcoin, given that it was able to reclaim $62,000.
If the price of BTC continues to rise and Bitcoin Domination jumps, this will invalidate a rise in altcoin prices.
Disclaimer
In accordance with the Trust Project This price analysis article is provided for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyAnd Disclaimer have been updated.