Altcoins
Altcoins to avoid as Bitcoin below $60,000 points to prolonged correction
The cryptocurrency market experienced a sudden sell-off on Wednesday that sent the Bitcoin price below $60,000. With an intraday loss of 4%, BTC price triggered the correction of major altcoins.
Earlier this week, the substantial influx of BTC ETF sparked a relief rally in the market. However, concerns are growing over increased selling pressure from distributions from defunct crypto exchange Mt. Gox and liquidations by government agencies.
Given the potential for a prolonged correction, market participants may consider avoiding the specified altcoin to protect their investments.
Read also : Binance Announces Delisting of Key Cryptocurrency Pairs, Prepare for Market Impact
XRP is a cryptocurrency designed to facilitate fast and cost-effective cross-border payments. It is the native token of the XRP Ledger (XRPL), a decentralized, open-source blockchain developed in 2012.
XRP | Tradingview
XRP struggled in the first half of 2024 as investor caution prevailed due to ongoing legal issues between Ripple and the US SEC. According to the latest updates, XRP maintains a market capitalization of $26.3 billion, with a trading volume in the last 24 hours reaching $1.037 billion.
Current daily chart analysis indicates that XRP is trading at $0.47 and testing the support trendline of a 6-year triangle formation. Despite the dynamic resistance serving as a key accumulation zone so far, Bitcoin’s prolonged corrective phase could potentially lead to the XRP Price below this level.
If a bearish breakout occurs, it could amplify the selling pressure, which could cause the altcoin price to drop below $0.40.
Read also : Ethereum, Bitcoin, XRP Drive $1.5 Billion Losses From Crypto Scams, What’s Going On?
Dog Hat (WIF) is a meme-inspired cryptocurrency launched on the Solana blockchain in late 2023. It originated from a viral internet meme featuring a Shiba Inu wearing a pink beanie.
Dogwifhat (WIF) | Tradingview
The meme sector is known for its volatility, often reacting dramatically to market changes. During the market correction in June, WIF coin fell from its high of $4.08 to $1.92, a decline of 53.22%.
Daily charts indicate that the declining price of Dogwifhat is oscillating between two parallel trendlines, forming a channel pattern. If this pattern persists, Wireless could decline by another 28% before finding support at the channel’s lower trendline.
As long as the trend remains intact, the downward trend in WIF is expected to continue.
Gala Games (GALA) is a blockchain-based gaming platform that allows players to earn cryptocurrencies and non-fungible tokens (NFTs) through gameplay.
Gala Games (GALA) | Tradingview
Over the past four months, GALA price has been in a steady downtrend, characterized by the formation of falling wedge patterns. Under the influence of this pattern, the price has fallen from a high of $0.086 to the current trading price of $0.025, marking a 70% decline. As a result, the market capitalization has fallen to $828.2 million.
As long as the falling wedge pattern persists, traders could continue to sell, extending the ongoing correction. For buyers to regain control of the asset, a break above the upper trendline is essential. This breakout could signal a change in market sentiment and potentially reverse the current bearish trend.
Key takeaways
Bitcoin’s fall below $60,000 on Wednesday has rekindled fears of a correction in the market. It seems that the last two weeks have been a relief rally for the cryptocurrency market, and now the selling pressure has resumed. However, a strong daily candle close below $60,000 for BTC could offer a better signal for an extended correction in altcoins.
Related Articles
Frequently Asked Questions (FAQ)
The Cryptocurrency Fear and Greed Index is a tool that measures investor sentiment in the cryptocurrency market.
In technical analysis, a triangle pattern is a chart formation created by drawing trendlines along a converging price range that resembles a triangle. This pattern is important because it often indicates that a breakout is imminent.
Answer: A channel pattern in trading refers to the price movement between two parallel trendlines where the price oscillates between an upper limit and a lower limit. These trendlines act as support and resistance levels.