Altcoins
Altcoins Like XRP Will Soon Show Signs of Life, Here’s Why
Currently, the spotlight is on the Bitcoin price chart and the current state of the cryptocurrency and altcoin markets. Analyst Blockchain Backer said that while ETFs are essential, the cryptocurrency market historically performs well during risk-on periods. While there are various narratives surrounding cryptocurrencies, such as sound money and block reward halvings, the reality is that the market often follows broader risk environments.
Looking at the altcoin market, He said the index often peaks and surges in tandem with traditional indices like the Russell 2000. That trend was clear yesterday when the Russell jumped 3.9%, while the NASDAQ fell 2.24%. Small and mid-cap stocks outperformed big tech companies like Microsoft, Nvidia, Apple, Google, Amazon, Meta and Tesla, indicating broad participation in the market.
This development is significant according to the analyst. Historically, every major rally in the cryptocurrency market has coincided with similar behavior in the Russell 2000, whether in 2020-2021, 2016-2017 or 2012-2013. This broad market participation has been a precursor to significant gains in the cryptocurrency market.
The recent move in the Russell 2000 is a positive sign, even if it is not yet a full breakout. The market has been trading in a range for months and this initial move is encouraging. The focus now is on whether this trend can continue and lead to a broader market expansion.
He added that we saw some early signals from altcoins before Bitcoin began its expansion. For example, XRP and Litecoin began to take off in 2017 before Bitcoin. Using benchmarks from 2017 and looking at Dogecoin’s history from 2013 to 2017, we see that we are at a critical juncture where expansion typically begins.
Currently, there is broader market participation, which is essential for altcoins like XRP to show signs of life. This broader participation is a positive signal, especially as the Russell rebounds to its previous highs while cryptocurrency prices remain low.