Altcoins
what awaits Ethereum and other cryptos?
What factors are driving the downtrend in altcoins and when can we expect a turnaround?
Over the past month, the crypto market, especially altcoinsfaced a prolonged downturn, with many considerable losses.
Ethereum (ETH), the second largest crypto by market capitalizationhas lost almost 10% of its value over the past 30 days, trading at around $2,960 as of May 13.
However, the ordinals (COMPUTER) was hit the hardest, falling 40% and now trading at just $36.80.
This market slowdown aligns with global economic trends, such as recent decision by the Federal Reserve (Fed) to maintain its interest rates between 5.25% and 5.50%.
The Fed’s cautious approach to monetary policy, aimed at combating inflation and economic growth, may have created uncertainty among crypto investors, leading them to favor more established assets like Bitcoin (BTC).
BTC has largely traded above $60,000 levels during this downturn, with BTC dominance even reaching a peak of almost 57% in April, a significant increase from last year’s levels of 45-46%. As of May 13, BTC dominance stood at over 55%.
BTC Dominance Chart | Source: TradingView
Furthermore, the Fed’s announcement concerning its strategy of reducing bond holdings, which slows the pace of the flow of maturing bond products without reinvestment, could indicate possible economic challenges ahead.
This signal may have further reduced investor confidence in altcoins, diverting attention and capital away from riskier assets.
As the cryptocurrency market faces this downturn, the question arises: when will altcoins rebound? Let’s explore.
What do the experts think?
Analysts have offered various perspectives on the current state of the altcoin market. Here’s what they think
Patrick H. | CryptelligenceX
Patric H. remains optimistic on the overall market, anticipating a continuation of the bull market until mid-Q3/Q4 2024.
🚨Contrarian opinion: The substance is not in it.
May is going to be emotionally difficult for many #Bitcoin And #Altcoins investors.
Over the next 2-6 weeks we will see the final shake-up before the breakout.
🧵Here’s what to expect in this turbulent phase.
—Patric H. | CryptelligenceX (@CryptelligenceX) April 30, 2024
However, he warns of a phase of turbulence in the short term, particularly in May. He predicts a final shake-up in the next 2-6 weeks, which could return to $52,000 for Bitcoin and $2 trillion for the total market cap.
He attributes the delay in hitting the bottom to the lack of sufficient pain in the market, indicating that sentiment remains too euphoric.
Patric advises monitoring the Fear and Greed Index for signs of a shift toward “fear.” He also mentions to watch for sentiment divergences and trading volumes, which could suggest a potential reversal.
Benjamin Cowen
Benjamin Cowen draws a parallel with the previous cycle, noting that ALT/BTC pairs tend to capitulate just before rate cuts. It suggests that ALT/BTC pairs could fall another 40% from current levels over the coming months.
In the last cycle, we saw #ALT /#BTC pairs capitulate just before rate cuts.
Maybe this time is no different? This would mean that ALT/BTC pairs would fall by another 40% over the next few months.
Short-term counter-trends do not invalidate this view. pic.twitter.com/BK3VIrCBJ2
–Benjamin Cowen (@intocryptovere) April 30, 2024
Cowen attributes altcoins’ current struggles to a decline in social interest, comparing the current market movement to that of 2019.
Altcoins continue to struggle as social risk is in freefall. People just don’t seem to care.
This whole move still feels close to 2019 to me. Social interest also fell just before the rate cuts arrived, and then ALT/BTC pairs finally bottomed as the Fed pivoted. pic.twitter.com/SEKbLRMTaX
–Benjamin Cowen (@intocryptovere) April 29, 2024
He points out that social interest has declined before rate cuts in the past, hinting at a potential bottom for ALT/BTC pairs coinciding with a turning point in Fed policy.
Michael van de Poppe
Michaël van de Poppe notes that altcoins are experiencing a steady correction in USD valuations, but BTC valuations are falling sharply, approaching cycle lows.
THE #Altcoin market capitalization is experiencing a regular correction (in USD valuations).
BTC valuations are falling sharply and are at the bottom of the cycle.
Undervaluation versus reality.
Now is not the time to turn away from cryptocurrencies, but to attack the markets by taking higher risks. pic.twitter.com/h298e63ory
– Michaël van de Poppe (@CryptoMichNL) May 12, 2024
He suggests that this undervaluation presents an opportunity to attack markets with higher risk rather than shy away from crypto.
What should we learn from it?
These analyzes suggest a cautious outlook for the altcoin market in the near term, indicating that more corrections may be ahead.
However, they also point to a possible upward trend in the medium and long term. This means you must remain vigilant and flexible as the market changes.
The next few weeks will be important for the altcoin market, with factors such as sentiment, trading volumes and external economic events likely to have a key impact.
Potential catalysts for market recovery
The crypto market is at a critical juncture, with potential catalysts that could restore normalcy and reignite bullish sentiment.
A major development is the progress of the Financial Innovation and Technology for the 21st Century Act (FIT21) of the United States House of Representatives, which goals bring regulatory clarity to digital assets.
If passed (could be in May itself), the bill could establish federal standards for digital assets, clarify the jurisdiction of regulatory bodies like the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), and establish a regulatory framework. for digital asset markets.
The crypto industry has long sought clearer regulation, and the FIT21 Act could provide much-needed certainty to market participants and investors, potentially boosting confidence and investment in the sector.
Additionally, the bill’s provisions allowing secondary market trading of digital products and imposing requirements on registered entities could improve market transparency and integrity.
Another potential market driver is the SEC’s upcoming decision regarding VanEck’s ETH spot exchange-traded fund (ETF). applicationscheduled for May 23, 2024. A favorable decision could trigger an ETH price rally, similar to the ETF-driven Bitcoin rally earlier in 2024.
Concerns remain regarding the SEC’s classification of ETH as a commodity or security, which could impact the approval of spot ETH ETFs.
Current sentiment around the launch of spot ETH ETFs in the United States is largely pessimistic, with concerns surrounding regulatory uncertainty and the position of the SEC under Chairman Gary Gensler.
Nonetheless, industry experts believe that a spot ETH ETF will eventually get the green light, like the spot BTC ETFs, which were initially rejected before prevailing in a lawsuit against the SEC.
In the short term, a rejection of the ETH spot ETF could trigger increased price volatility and a decline in ETH prices as the market absorbs the news.
Meanwhile, regulatory clarity and approval of spot ETH ETFs could propel the altcoin market recovery and uptrends in the coming months.
ETH Price Analysis
As of May 13, Ethereum was trading at around $2,970. ETH has been on a downward trend, raising concerns that it could fall below the $2,500 mark.
The recent ETH price trend has been bearish, with weekly trading opens lower than the previous week’s close, suggesting a lack of bullish momentum.
ETH Price Analysis | Source: TradingView
Over the previous 24 hours, ETH/USD traded positively, surpassing the $2,900 levels but facing solid resistance around the EMA50 at $2,990. For a downtrend to resume, ETH must break below $2,900, potentially heading towards the $2,800 and $2,620 levels.
On the other hand, further upside and a breakout of $2,990 could lead to further gains up to $3,130.
The expected trading range for ETH is between $2,800 (support) and $3,050 (resistance), with the trend remaining bearish.
Analysis of ETH suggests that prices could face continued downward pressure, which would also impact other altcoins in the market.
Altcoins
Altcoins with huge potential Bonk and Mpeppe (MPEPE)
The cryptocurrency market is full of potential, and two altcoins that have recently caught the attention of investors are Bonk (BONK) and Mpeppe (MPEPE)Both of these tokens offer unique features and promising growth prospects that set them apart in the crowded altcoin space. In this article, we will explore what makes Bonk (BONK) and Mpeppe (MPEPE) attractive investment opportunities and how they could shape the future of the cryptocurrency market.
Bonk (BONK): The viral sensation
Bonk (BONK) burst onto the scene with a playful and viral take on cryptocurrency. Here’s a closer look at what’s made Bonk (BONK) a sure bet in the altcoin space.
The Viral Marketing Strategy
Bonk (BONK) Bonk has harnessed the power of internet memes and viral marketing to quickly gain popularity. Its branding, which features a humorous and engaging mascot, has resonated with the crypto community and beyond. By harnessing the viral nature of meme culture, Bonk (BONK) has quickly established a strong presence and captured the imagination of a wide audience.
Merging meme culture and blockchain innovation
Mpeppe (MPEPE) is emerging as a new and exciting player in the altcoin market. With its unique blend of features and innovative approach, Mpeppe (MPEPE) is attracting the attention of investors and cryptocurrency enthusiasts.
Mpeppe (MPEPE) combines the fun and relatable aspects of meme culture with advanced blockchain technology. Inspired by football and blockchain innovation, Mpeppe (MPEPE) offers a distinctive brand identity that appeals to a wide audience. This fusion of entertainment and technology sets Mpeppe (MPEPE) apart from other altcoins and offers an attractive investment opportunity.
Community impact
The strength of each cryptocurrency’s community will play a vital role in its future trajectory. Bonk (BONK) and Mpeppe (MPEPE) Cryptocurrencies build strong, engaged communities, but how they foster and grow those communities will determine their long-term success. Active, supportive communities can generate lasting interest and value, making them essential to the future of every cryptocurrency.
Conclusion: Invest in Bonk and Mpeppe
Bonk (BONK) and Mpeppe (MPEPE) represent exciting opportunities in the altcoin market. While Bonk (BONK) has established itself through its viral marketing and strong community support, Mpeppe (MPEPE) offers a unique blend of meme culture and advanced blockchain features. Both coins have the potential to make a significant impact in the cryptocurrency space.
For investors looking to explore high-potential altcoins, keeping an eye on Bonk (BONK) and Mpeppe (MPEPE) offers interesting opportunities. As the market evolves, these tokens could play a significant role in the future of cryptocurrencies, making them attractive options for those looking for growth and innovation in the altcoin space.
For more information on the Mpeppe presale (MPEPE):
Visit Mpeppe (MPEPE)
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Altcoins
Top 6 Altcoins Expected to EXPLODE Before 2025: Buy Now!
As we approach 2025, the cryptocurrency market is poised for a major shift. According to Austin, an analyst at Altcoin Daily, potential policy changes could trigger a major surge in altcoins. A potential change in the Federal Reserve’s policy rate in September could lead to substantial growth in the cryptocurrency market, benefiting Ethereum, Solana, and several promising new altcoins.
Here’s a look at some altcoins priced between $1 and $2 that could offer good returns during the current market downturn. Dive right in.
Top 6 Altcoins to Watch
Aethir: The Decentralized GPU Marketplace
Aethir is becoming a key player in decentralized cloud infrastructure for gaming and AI. With over $36 million in annual revenue, Aethir is meeting the growing demand for GPU computing from large tech companies like Google and Microsoft. By utilizing underutilized GPUs, Aethir is making a significant impact in the tech world. Current Price: $0.07176.
Ondo: The Best Bet in the RWA Sector
Ondo is transforming the way financial assets are tokenized with its real asset protocols. The ONDO token, used for Ondo DAO and Flux Finance, offers a 5.3% annual dividend in USDY. Despite a recent 35% price drop, ONDO’s price action suggests a potential breakout. With less selling pressure and an increase in off-exchange holdings, the outlook appears positive. Current price: $0.9251.
Lukso: Blockchain for Creators and Social Networks
Lukso is creating a unique blockchain focused on connecting creators, brands, and users. As an alternative to Ethereum, Lukso offers universal profiles and gasless transactions, making blockchain technology more accessible. With a strong vision and strong leadership, Lukso is poised for wider adoption. Current Price: $1.71.
AIT Protocol: Decentralized AI Data Annotation
The AIT protocol addresses the need for decentralization of work in AI data annotation. It connects human trainers with AI model owners through a decentralized marketplace, thereby improving AI models. Its growing adoption in Asia and strategic investments suggest that it could be a major disruptor in the AI space. Current price: $0.1169.
Foxy (Linea): A meme piece with level 2 potential
Foxy, a cryptocurrency associated with Linea’s Ethereum layer 2 scaling, has received support from ConsenSys. It stands out in Ethereum layer 2 due to its MetaMask integration and fast transactions. With Linea’s growing adoption and low transaction costs, Foxy is well-positioned for growth. Current price: $0.01116.
Off-grid: Emerging Altcoin in Video Gaming
Finally, Off The Grid, developed by Godzilla, is generating excitement in the crypto gaming sector. Although it has not yet launched, it has received positive feedback from industry experts, suggesting strong potential. Other infrastructure projects like Immutable and games such as Xers and Star Heroes are also worth considering for those interested in crypto gaming.
Who’s excited about the potential altcoin rally?
Altcoins
Bitcoin Dominance Hits 3-Year High: Is Altcoin Season Coming?
As Bitcoin dominance hits a three-year high of 56%, analysts are predicting the potential start of an altcoin season. Although Bitcoin’s current valuation has fallen below $63,600, the high dominance level suggests a significant shift in the market.
Experts point out that Bitcoin dominance is a key factor in predicting altcoin trends. If Bitcoin holds its price while its dominance declines, it could signal a flow of investment into altcoins. This triggers what many call an “altcoin season.”
Conversely, if Bitcoin price and dominance fall simultaneously, it usually indicates a broader market correction rather than an altcoin boom.
What Factors Suggest an Imminent Altcoin Season?
Markus Thielen of 10X Research noted that Bitcoin Price Tends to Stabilize in August. Therefore, a stable Bitcoin price, coupled with declining dominance, may create the ideal conditions for altcoins to thrive.
Learn more: Bitcoin Dominance Chart: What Is It and Why Does It Matter?
Bitcoin Domination. Source: TradingView
In addition, Ki Young Ju, founder of the chain analysis CryptoQuant platform has highlighted increasing activities by crypto whales that appear to be preparing for an altcoin rally.
“Limit buy order volume for altcoins, excluding Bitcoin and Ethereum, is increasing, indicating that strong buy walls are being put in place” said.
Ju explained that limit orders, which are preferred by institutions for large trades to minimize price impact, create “quote volume.” His analysis, which includes a graph of the 1-year normalized cumulative buy/sell volume difference, indicates that altcoins like Solana (SOL)Cosmos (ATOM) and Polygon (MATIC) experience significant accumulation activities.
“The indicator is calculated by taking the cumulative sum of the difference between the buy and sell quote volumes, using a one-year rolling window. If there is an upward trend, it means the buy volume of the quotes is increasing, indicating stronger buy walls,” Ju explained.
Normalized cumulative difference over 1 year between purchase and sale volumes. Source: CryptoQuant
This bullish sentiment is reflected in the trends following recent developments in crypto financial products. Crypto Vikings, a renowned analyst, suggests that current market conditions are conducive to altcoin season.
“Many alts are down 60-80% in the last couple of months, and many of them have already bottomed and are in a good buy zone. Bitcoin Domination is also facing major resistance relative to where the massive altcoin season began each cycle,” Crypto Vikings declared.
Sentiment is increasingly optimistic, as many believe that the disillusionment that follows periods of prolonged economic downturn opens the way to profitable investments.
Another trader, Mags, noted that altcoins are only up 58% after breaking a 525-day accumulation. Therefore, he predicts a possible continuation of the altcoin rally after a reaccumulation consolidation.
“Permanent bears will tell you that altcoins are done and in a distribution phase. But if you look at the chart, altcoins are only up 58% since they broke out after 525 days of accumulation. Do you really think a breakout after 525 days of consolidation will end after only a 58% move?” wrote on X (Twitter).
Learn more: 11 Cryptos to Add to Your Portfolio Before Altcoin Season
On the other hand, Brian Quinlivan, senior analyst at Santiment, told BeInCrypto that there is a lack of enthusiasm for the altcoin season due to the recent price drops.
“As far as mentions of altcoin season go, we’re not really seeing any significant enthusiasm from traders about it. Traders have at least been a little bit more vocal since we started seeing prices drop over the last three days,” Quinlivan told BeInCrypto.
Disclaimer
In accordance with the Trust Project This price analysis article is provided for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyAnd Disclaimer have been updated.
Altcoins
On-chain data confirms whales are preparing for altcoin surge with increased buy orders
Ki Young Ju, CEO of analytics platform CryptoQuant, believes whales are preparing for an upcoming surge in altcoins.
In a recent revelation about X, Ju underlines that the volume of limit buy orders for altcoins, excluding Bitcoin and Ethereum, is increasing. This pattern suggests the formation of substantial buy walls, highlighting significant buying pressure from large-scale investors.
Ju’s chart identifies two main phases in limit order volume for altcoins: the limit sell phase and the limit buy phase. The limit sell phase saw a notable increase in cumulative sell orders in 2022, demonstrating strong selling pressure from whales and other market participants. This phase coincided with a period of falling altcoin prices due to unfavorable market conditions.
Then, the limit buying phase began, marked by a significant increase in cumulative buy orders. This indicates a period of strategic accumulation where whales establish substantial buy walls.
According to Ju, the increase in buying volume suggests confidence in the future conditions of the altcoin market. This buying pressure creates strong support levels, indicating that whales are preparing for a positive change in the market.
Buying pressure on specific altcoins
Ju also provided a heatmap of the 1-year normalized cumulative buy/sell volume difference for various altcoins, showing the buying and selling pressure over time. Solana (SOL) has seen alternating strong buying and selling phases, with recent activity showing increased buying interest. Cosmos (ATOM) and Polygon (MATIC) have also shown increased buying pressure despite mixed activity trends.
Cardano (ADA) and PancakeSwap (CAKE) have shown balanced buying and selling phases, with recent trends proving increased buying pressure. Coins like AMP and ANKR have also demonstrated increased buying activity. The heatmap reveals that most altcoins are seeing increased buying pressure as whales and large investors accumulate altcoins in anticipation of a rally.
Meanwhile, coins experiencing selling pressure, as indicated by the predominantly red areas on the heatmap, include DOGE, DASH, AXS, XRP, COMP, and AAVE, BNT.
Bitcoin whales are also buying
It is important to note that while whales are accumulating altcoins, Bitcoin whales are also active. Crypto Basic note an increase in buyer activity on Binance, which aligns with an increase in the buy/sell ratio of takers and whale movements. Analyst Ali Martinez highlighted the ratio fluctuations from below 0.8 to above 1.7 between July 27 and 31. Ratios above 1.0 indicate aggressive buying, often preceding price rallies.
From July 27 to July 28, the ratio remained mostly above 1.0, corresponding to the rise in Bitcoin price from around $66,500 to over $67,000. A spike to around 1.5 led to a sharp increase in price to around $68,500. However, on July 30 and 31, the ratio fell below 1.0 several times, corresponding to a drop in price to around $66,000, before a final spike to 1.7 indicated another slight increase in price.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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