Altcoins
Altcoins Like XRP Will Soon Show Signs of Life, Here’s Why
The spotlight is currently on the Bitcoin price chart and the current state of the cryptocurrency and altcoin markets. Blockchain analyst Backer said that while ETFs are crucial, the cryptocurrency market has historically performed well during risk-on periods. While there are various narratives surrounding cryptocurrencies, such as sound money and block reward halvings, the reality is that the market often follows broader risk environments.
Looking at the altcoin market, said it often peaks and recovers alongside traditional indexes like the Russell 2000. This trend was clear yesterday when the Russell rose 3.9% while the NASDAQ fell 2.24%. Small and mid-cap stocks outperformed major technology companies like Microsoft, Nvidia, Apple, Google, Amazon, Meta and Tesla, indicating broad market participation.
This development is significant according to the analyst. Historically, every major rally in the cryptocurrency market has coincided with similar behavior in the Russell 2000, be it in 2020-2021, 2016-2017, or 2012-2013. This broad market participation has been a precursor to significant rallies in the cryptocurrency market.
The recent action in the Russell 2000 is a positive sign, although it is not yet a complete breakout. The market has been range-bound for months and this initial move is encouraging. The focus now is on whether this trend can continue and lead to a broader market expansion.
He added that we saw some early signs from altcoins before Bitcoin began its expansion. For example, XRP and Litecoin began to take off in 2017 before Bitcoin. Using 2017 benchmarks and looking at Dogecoin’s history from 2013 to 2017, we see that we are at a critical point where expansion usually begins.
Currently, there is a larger market participation, which is essential for altcoins like XRP to show signs of life. This larger participation is a positive sign, especially since Russell is bouncing back to its previous highs while cryptocurrency prices remain low.