Altcoins

Wave of Relief on Altcoins Likely as BTC Posts $5,000 Range

Published

3 months ago

1 May, 2024

Wave of Relief on Altcoins Likely as BTC Posts $5,000 Range

Bitcoin price could fall into the liquidity pool between $60,600 and $59,005 as it establishes weekly resistance at $65,600.
Ethereum price could confirm a downtrend with a 25% rise above $3,406 at the breakout point.
Ripple price defends $0.5000, but continued bearish activity will keep XRP holders’ vision for $0.6000 a hopium pipe dream.

Bitcoin (BTC) price has recorded lower highs over the past seven days, with a similar outlook seen among altcoins. Meanwhile, even though altcoins are showing a rather ominous outlook amid broader market hemorrhaging, there could soon be some relief as the fundamentals show:

A great chill in euphoria and feeling

A cooling phase allows the market to correct itself, stabilize and establish a more sustainable growth trajectory.

Good outlook for financing rates

Healthy financing rates indicate a well-functioning and balanced market ecosystem, promoting stability, reducing the risk of manipulation, and fostering trust among market participants.

Overleveraged short positions await liquidation

Although the initial liquidation of overleveraged short positions can cause short-term volatility, the final impact can often be positive for an asset’s price.

Learn more: Week Ahead: Bitcoin Could Surprise Investors This Week

Bitcoin Price Forms $5,000 Range

After successive weekly closes below $65,600 and as bulls defend against a fall below $60,000, Bitcoin price has established a macro market range of $5,000. Odds suggest a further decline as the Relative Strength Index (RSI) is moderate below the average level of 50 and the Awesome Oscillator (AO) indicator continues to show red histograms in negative territory.

If seller momentum increases and Bitcoin price falls liquidity pool between $60,600 and the March 5 intraday low at $59,005, the downtrend could continue with bulls waiting to buy BTC just above the psychological level of $50,000.

BTC/USDT 1-day chart

Conversely, if history repeats itself, Bitcoin the price could move in the opposite direction to that of the DXY Compare indicator. However, to confirm the continuation of the uptrend, bulls need to take BTC above $72,000 as many bearish activities await BTC price near the $70,000 threshold.

Ethereum price could increase by 25%, pending confirmation

Ethereum the price is trading with a bearish bias, but not for long as the price action since March 12 has consolidated into a descending wedge pattern. The execution of this bullish reversal technical formation will occur after a decisive breakout above the upper trendline on a one-day time frame.

The target objective for this pattern is a 25% move toward $4,250, determined by measuring the health of the wedge and overlaying it with the expected breakout point.

The Relative Strength Index (RSI) continues to hover around the average level of 50, while the AO indicator shows increasing bullish sentiment displayed by the green histograms heading towards positive territory.

The highest highs observed on the RSI chart since mid-April, compared to the lowest highs in ETH price, also support the bullish thesis, suggesting a bullish divergence. If the RSI swings above the average level, it would further tip the scales in favor of a bullish breakout.

ETH/USDT 1-day chart

On the other hand, if the ETH bears are successful and book profits for the nearly 10% gains made since the Ethereum price rebounded from the $2,900 support, the market would see a surge. correction. A candlestick closing below $2,900 would invalidate the bullish thesis.

Ripple price bears the brunt of persistent bearish pressure

Ripple The downside potential remains very present with bearish activity waiting to drop on the XRP price once it rises. This can be seen with the multiple peaks on the volume profile (gray) in the one-day chart below. The RSI is also in a steady decline, showing declining momentum.

This, coupled with the red bars of the histogram which remain in negative territory, reinforces the bearish outlook. If the psychological support of $0.5000 is lost, Ripple price could fall to the $0.4500 threshold, or in a disastrous case, extend the fall to the bottom of the market range at 0.4188 $, almost 20% below current levels.

XRP/USDT 1-day chart

On the other hand, if XRP bulls appear, Ripple price could rebound. However, for the bearish thesis to be invalidated, the price must register a candlestick close above $0.6500. Indeed, massive bearish activity awaits the payment token in the area surrounding $0.6000 as XRP bears wait to cash out.

FAQ Bitcoin, altcoins and stablecoins

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as currency. This payment method cannot be controlled by any person, group or entity, eliminating the need for third party participation during financial transactions.

Altcoins are any cryptocurrency except Bitcoin, but some also consider Ethereum to be a non-altcoin because it is from these two cryptocurrencies that the fork occurs. If this is true, then Litecoin is the first altcoin, derived from the Bitcoin protocol and, therefore, an “enhanced” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset they represent. To achieve this, the value of a stablecoin is linked to a commodity or financial instrument, such as the United States dollar (USD), whose supply is regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are prone to volatility.

Bitcoin dominance is the ratio of the market capitalization of Bitcoin to the total market capitalization of all cryptocurrencies combined. This gives a clear picture of the interest in Bitcoin among investors. Strong BTC dominance typically occurs before and during a bull run, during which investors resort to investing in relatively stable, high market cap cryptocurrencies like Bitcoin. A decline in BTC dominance usually means investors are shifting their capital and/or profits to altcoins in search of higher returns, which usually triggers an explosion in altcoin rallies.

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Related Topics:Bitcoin cryptocurrencies ethereum Ripple Technical analysis

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Altcoins

Best Altcoins for the Next Bull Cycle: Santiment’s Recommendations

Published

4 hours ago

27 July, 2024

TokenTalk Staff

Best Altcoins for the Next Bull Cycle: Santiment’s Recommendations

As Bitcoin (BTC) approached the $67,000 mark on Friday, the altcoin market, led by Ethereum (ETH)has shown strong bullish signals. Many altcoins are reaching the peak of a multi-week consolidation phase that began earlier this year. On-chain data also indicates that institutional investors have been actively buying crypto assets, preparing for the next phase of the bull market.

Additionally, several altcoins have recently retested the bullish breakout of the overall downtrend. With Bitcoin dominance set to decline, focusing on the altcoin market could be a smart move to maximize returns.

Expert advice: What should you pay attention to?

According to market intelligence platform Santiment, investors should keep an eye on the average trading returns of different assets.

After critically analyzing market data, Santiment believes that Shiba Inu (SHIB), Uniswap (UNI), Polygon (MATIC), Chainlink (LINK), Cardano (ADA), and Ripple-backed XRP are the best large-cap altcoins to buy now to maximize profits in the future.

Meanwhile, Santiment pointed out that Toncoin (TONNE), Bitcoin, Ethereum (ETH), and Dogecoin (DOGE) present a higher risk to maximize profits in the planned alternative season.

Market Outlook: Volatility Ahead?

With the Federal Open Market Committee (FOMC) expected to deliver its policy statements next week, increased volatility in the cryptocurrency market is likely. Furthermore, historical data suggests that August could bring a bearish trend for the sector.

Despite this, the cryptocurrency market is expected to turn bullish again in the fourth quarter, driven by the US elections and anticipated interest rate cuts.

Invest smart. The future of cryptocurrencies is bright.

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Altcoins

Analyst Says Ethereum-Based Altcoin “Looks Strong As Hell,” Outlines Path Ahead For Bitcoin And Solana

Published

6 hours ago

27 July, 2024

TokenTalk Staff

Analyst Says Ethereum-Based Altcoin “Looks Strong As Hell,” Outlines Path Ahead For Bitcoin And Solana

A widely followed crypto analyst and trader believes a memecoin is headed for the next leg higher.

Pseudonymous crypto trader Altcoin Sherpa tell his 216,400 followers on the social media platform X that Pepe (PEPE) market fundamentals appear solid.

“PEPE: I never got a chance to add $0.00001111, but I’m still in it. He seems pretty strong. I’m still a big fan of memes in general.”

Source: Altcoin Sherpa/X

Pepe is trading at $0.00001128 at the time of writing, down 8% in the last 24 hours.

Then the analyst said Ethereum (ETH) rival of Solana (GROUND) has greater upside potential due to network activity.

“SOL: Go long on Solana. Why? Because SOL memes continue to take off and everyone is denominated in Solana. Being in the trenches of crap money really helps you understand this stuff better. I expect a pullback soon, but this would be the bottom to buy in my opinion.”

Source: Altcoin Sherpa/X

Looking at the analyst’s chart, he suggests that SOL could eventually reach $205.

Solana is trading at $166 at the time of writing, down 6.7% in the past 24 hours.

Finally, the analyst said that Bitcoin (Bitcoin) appears to be in an uptrend but could retest the $63,000 level.

“BTC: Price still looks pretty strong to me. If you really want a dip to get in, look for $63,000 around the 200 four-hour exponential moving average (EMA). For now, things should continue in my opinion.”

Source: Altcoin Sherpa/X

At the time of writing, Bitcoin is trading at $64,596, down nearly 2% in the past 24 hours.

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Altcoins

XRP, ADA, and Other Altcoins to Accumulate Ahead of Trump’s Nashville Speech

Published

7 hours ago

27 July, 2024

TokenTalk Staff

XRP, ADA, and Other Altcoins to Accumulate Ahead of Trump's Nashville Speech

Bitcoin has recovered most of its losses from the week as traders eagerly await former U.S. President Donald Trump’s appearance at the Bitcoin 2024 conference in Nashville, Tennessee. Interestingly, Bitcoin gained over 1% today as Trump appears to have changed his stance on digital currencies this election cycle.

Analysts Buzz About Altcoins said that this week, crypto whales have been quietly accumulating several altcoins, showing confidence in their short-term potential despite recent performance declines. Here are the top altcoins:

Arbitration:

Current price: $0.72

Whale activity:Despite its significant decline since the start of the year, Arbitrum has seen an 87% increase in net inflow from large holders over the past week. This suggests that whales believe in the token’s long-term potential. Arbitrum, a Layer 2 scaling solution for Ethereum, aims to improve transaction speeds and reduce costs on the Ethereum network. The recent accumulation of whales could indicate confidence in its technology and future adoption.

XRP:

Current price: $0.59

Whale activity:According to Santiment, the number of addresses holding between 100 million and 1 billion XRP tokens has increased since July 23. This shows that the supply has increased from 38% to 40%, which is a sign of growing confidence among large holders. XRP has benefited from recent legal victories and market sentiment, making it an attractive option for whales.

Cardan:

Current price: $0.41

Whale activity:Cardano saw a staggering 10,878% increase in large holder inflows in a single day, surpassing the 5 billion mark. This indicates a significant level of confidence among whales in ADA’s recovery potential. Cardano’s recent upgrades and continued development have been positively received by the market, contributing to its attractiveness.

Chain link

Current price: $13.55

Whale activity: Chainlink recently integrated its Cross-Chain Interoperability Protocol (CCIP) with TrueFi on the Ethereum and Arbitrum blockchain platforms. TrueFi, backed by Coinbase and Chainlink, provides transparent and real-time financial data, improving the decentralized finance (DeFi) ecosystem. This integration could drive increased adoption and usage of Chainlink, making it a popular choice among whales.

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Altcoins

Ethereum (ETH) ETF Fails to Spark Altcoin Season, Market Rebounds Above $1 Trillion

Published

8 hours ago

27 July, 2024

TokenTalk Staff

The rebound in altcoin market cap to $1 trillion slightly changes the positive dynamics for the much-anticipated altcoin season in Q3 2024.

Bulls took control of today’s session, pushing the total cryptocurrency market cap to $2.39 trillion, up 4% in 24 hours at press time. Total trading volume stands at $82.2 billion, up 4.4% in 24 hours, at the time of writing.

The Ethereum ETF was supposed to be the flagship of the altcoin season, but the response so far suggests nothing in its favor.

Altcoin market cap is moving in a flag pattern, a steady rise above $1.56T could trigger the altcoin rally and lead to the altcoin season with favorable market conditions.

Ethereum ETF Potential Stabilizes

The Ethereum ETF got off to a strong start with $1 billion in trading volume on its first day with massive inflows and outflows. This activity attracted a lot of money to Ethereum but failed to circulate among other altcoins.

With the launch of Ethereum, market sentiments were poised to trigger the altcoin season, but the cooling volume of the ETH ETF and the distributed interest in the BTC ETF could not muster enough power.

While the price of Ethereum (ETH) is yet to react, experts predict that the price will see a massive surge between $4,000 and $7,000. At the time of writing, ETH is trading at $3,271 with a 24-hour growth of 3.08%.

Altcoin Season Indicator Kills All Hopes.

The required demand for the altcoin season has not been met by the cryptocurrency markets and this can be seen in the Altseason Season Index indicator which is below the threshold of 25.

A push above 75 will mark the start of altcoin season.

Source Blockchain Center

Furthermore, analyzing the performance of the top 50 assets in 90 days shows that only 11 of them have outperformed BTC.

To kick off the official altcoin season, at least 75% of assets must outperform Bitcoin.

An increase in inflows and the return of investors in September and October could potentially trigger the altcoin season we have all been waiting for.

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