Altcoins
Bitcoin – This Falling Metric Could Be Key to Ethereum and Solana Price Rise
- Top altcoins like Ethereum, Solana, and BNB saw significant gains in the past 24 hours
- However, not all technical metrics and indicators were optimistic
Bitcoin’s last 24 hours have been productive, with the cryptocurrency climbing back above $63,000 on the charts. As expected, most altcoins in the market followed suit, with their charts also turning green. However, the performances of the latter fueled a decline in Bitcoin [BTC] dominance. In fact, it has reached such a critical level that a new altcoin season could soon be approaching.
Altcoin season is here
Captain Faibik, a popular crypto analyst, recently shared a Tweeter highlighting an interesting development. Similarly, Bitcoin dominance is now moving in an ascending wedge pattern. This means that the chances of BTC dominance declining over the coming days are very likely. This would be a positive sign for altcoins, as their market capitalization should then increase.
Mags, another famous crypto analyst, also shared a Tweeter evoking a historical event. The tweet indicated that in 2020, the altcoin market was in an accumulation phase. This ended in the second half, sparking a huge bull rally.
The analyst believes that a similar trend can be seen this time, further increasing the chances of an upcoming altcoin season. If the rally occurs, the market cap of altcoins is expected to increase significantly.
An overview of the best altcoins
To see if altcoins are gearing up for a rally, what better way than to check how top alts are performing? According to CoinMarketCap, Ethereum [ETH], the king of altcoins, increased its price by more than 4.5% in the last 24 hours. At the time of writing, it was trading at $3,111.72 with a market cap of over $373 billion.
Like ETH, BNB And Solana [SOL] also turned bullish as their values jumped 3.6% and 5%, respectively. At press time, BNB was trading at $586, while SOL’s value stood at $145.2.
However, surprisingly, despite the recent price rally, investor confidence in these major altcoins remains low. AMBCrypto’s analysis of Santiment data revealed that the weighted sentiments of ETH, SOL, and BNB all remained in the negative zone.
Source: Santiment
However, the good news is that Ethereum’s open interest has increased slightly, along with its price. An increase in this metric is generally a sign that the prevailing price trend is likely to continue.
SOL open interest took the lead over ETH as it also saw an uptick. On the contrary, BNB fell, although its price recorded a slight increase in the charts.
Source: Santiment
AMBCrypto then analyzed the daily chart of ETH to see if it could maintain its uptrend. We found that its Money Flow Index (MFI) deteriorated after a slight rise, while its Chaikin Money Flow (CMF) moved south.
These suggest that investors may not see the price of ETH rise explosively in the near term.
Source: TradingView
Read Ethereum [ETH] Price prediction 2024-25
Likewise, Solana’s technical indicators also looked rather bearish. Its IMF and CMF headed south, indicating that the token’s rally may not last.
Source: TradingView
Given these data sets, it will be interesting to see how soon a new altcoin season arrives.