Altcoins
Altcoins to Avoid as Bitcoin Below $60K Suggests Extended Correction
On Wednesday, the cryptocurrency market witnessed a sudden sell-off that sent the Bitcoin price below $60,000. With an intraday loss of 4%, the price of BTC triggered the correction of major altcoins.
Earlier this week, the significant influx from BTC ETFs has triggered a relief rally in the market. However, concerns are growing over increased selling pressure from distributions at the defunct cryptocurrency exchange Mt. Gox and liquidations by government agencies.
Given the possibility of a prolonged correction, market participants may consider avoiding the specified altcoin to protect their investments.
Read also: Binance Announces Delisting of Major Crypto Pairs, Brace Yourself for Market Impact
Exchange rate risk is a cryptocurrency designed to facilitate fast and convenient cross-border payments. It is the native token of XRP Ledger (XRPL), an open-source, decentralized blockchain developed in 2012.
XRP | Trading View
XRP has struggled in the first half of 2024 as investor caution prevails due to ongoing legal issues between Ripple and the US SEC. According to the latest updates, XRP maintains a market capitalization of $26.3 billion, with a trading volume in the last 24 hours that reached $1.037 billion.
Current daily chart analysis indicates that XRP is trading at $0.47 and testing the support trend line of a 6-year-old triangle pattern formation. While dynamic resistance has played the role of a key accumulation zone so far, the extended correction phase in Bitcoin could potentially drive the XRP Price below this level.
A bearish breakout could amplify the selling pressure, possibly causing the altcoin price to drop below $0.40.
Read also: Ethereum, Bitcoin, XRP Cause $1.5 Billion Losses Due to Crypto Scams: What’s Going On?
Dogwife Hat (WIF) is a meme-inspired cryptocurrency launched on the Solana blockchain in late 2023. It originated from a viral internet meme depicting a Shiba Inu wearing a pink hat.
Dogwifhat (WIF) | Tradingview
The meme industry is known for its volatility, often reacting dramatically to market changes. During the June market correction, WIF coin fell from its peak of $4.08 to $1.92, a decline of 53.22%.
Daily charts indicate that the declining price of Dogwifhat is oscillating within two parallel trend lines, forming a channel pattern. If this pattern persists, Wife could drop another 28% before finding support at the lower trendline of the channel.
As long as this pattern remains intact, the WIF’s downtrend is likely to continue.
Gala Games (GALA) is a blockchain-based gaming platform that allows players to earn cryptocurrencies and non-fungible tokens (NFTs) through gaming.
Gala Games (GALA) | Commercial View
Over the past four months, the price of GALA has been in a steady downtrend, characterized by the formation of a falling wedge pattern. Under the influence of this pattern, the price dropped from a high of $0.086 to the current trading price of $0.025, marking a decline of 70%. As a result, the market capitalization fell to $828.2 million.
As long as the falling wedge pattern persists, traders may continue to sell, extending the current correction. A breakout above the overhead trend line is essential for buyers to regain control of the asset. This breakout could signal a change in market sentiment and potentially reverse the current downtrend.
Key takeaway
Bitcoin’s fall below $60,000 on Wednesday has renewed the fear of a correction in the market. It seems like the last two weeks have been a relief rally for the cryptocurrency market, and now the selling pressure has resumed. However, a strong daily close of the candle below $60,000 for BTC could offer a better signal for a prolonged correction in altcoins.
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Frequently Asked Questions (FAQ)
The Cryptocurrency Fear and Greed Index is a tool that measures investor sentiment in the cryptocurrency market.
In technical analysis, a triangle pattern is a chart formation created by drawing trend lines along a converging price range that resembles a triangle. This pattern is significant because it often indicates that a breakout is imminent.
Answer: A channel pattern in trading refers to the price movement between two parallel trend lines where the price fluctuates within an upper and lower boundary. These trend lines act as support and resistance levels.