Altcoins
Is Now a Good Time to Buy? Bitcoin’s RSI Indicates Opportunities
- Bitcoin’s RSI indicates potential rebounds for the altcoin market, particularly RUNE, RNDR, and ADA.
- Despite market lows, technical analysis suggests that certain altcoins could offer promising investment opportunities.
The cryptocurrency market, particularly the altcoin sector, has seen a significant slowdown after reaching a peak market capitalization of $1.28 trillion in March.
Recently, the market capitalization fell below the $1 trillion mark, signaling a bearish phase that made many investors cautious.
Bitcoin RSI says BTFD
However, this period of decline may also present buying opportunities, as indicated by key technical analysis from reputable crypto analysts.
Sheldon The Sniper, a highly regarded figure in the crypto analysis community, has Underlines how Bitcoin’s Relative Strength Index (RSI) can be used to identify potential buying zones.
This includes altcoins like THOR Channel [RUNE], Render Token [RNDR]And Cardano [ADA].
According to Sheldon, when Bitcoin’s RSI drops to certain levels, it often precedes rallies in certain altcoins.
This has been seen with the likes of RUNE and ADA, which historically show strong recoveries when their RSI readings fall below 40% on weekly charts.
This suggests that despite the overall market’s struggles, there are pockets of potential that could benefit savvy investors.
At press time, Bitcoin was trading at $60,746, down 1.5% over the past 24 hours, and its RSI had reached a critical zone that could indicate an imminent change in market sentiment .
Analyzing Altcoins: Cardano as a Case Study
While Sheldon highlighted RUNE, RNDR, and ADA as potential buys, it would make sense to dive into any of these altcoin fundamentals to see if they truly present attractive investment opportunities.
Now, let’s use Cardano as a case study. Data de Santiment reported that Cardano’s daily active addresses have declined significantly, from 36,000 on June 24 to just under 8,000 recently.
This sharp reduction suggests a decrease in network activity, which could negatively impact ADA’s price.
Source: Santiment
Additionally, IntoTheBlock data reveals that large-scale investors, or whales, may currently find ADA less attractive.
The number of transactions exceeding $100,000 fell from 7,000 on June 24 to 4,000 at press time, signaling a potential withdrawal of investor interest.
Source: In the block
This trend is reflected in the asset’s Open Interest, which, according to Coin glassfell 2.74% over the past day to $203 million.
Conversely, there was a significant increase in open interest volume, which jumped almost 50% to $307 million, indicating mixed market signals.
Source: CryptoQuant
Read Bitcoin [BTC] Price forecast 2024-25
These downward trends in key indicators not only suggest a price decline but have also placed around 74% of ADA holders at a loss, as reported by AMBCrypto.
This situation raises a crucial question: will this lead to an increase in selling pressure?