Altcoins
Is the altcoin winter over? What Solana’s price charts suggest
- The altcoin market has undergone a significant correction, with a decline of 12.5% from its peak.
- Analysts’ forecasts suggest a recovery driven by new ETF listings and macroeconomic factors.
THE altcoins The market is currently undergoing a notable correction, with the overall market capitalization falling from a high of $1.2 trillion in March to $1.05 trillion currently, marking a decline of 12.5%.
This decline has significantly affected major altcoins, with some experiencing drops of more than 40% in the last two weeks alone.
Michael Van De Poppe, a well-known cryptocurrency analyst, recently discussed the volatility of the altcoin market and its future prospects in his latest video analyses.
According to Van De Poppe, the high volatility of the altcoin market is nothing new and is characteristic of both significant gains and severe corrections.
The recent decline has prompted many to question the future of altcoins and whether the downward trend will continue. Van De Poppe attributes the current market instability to a couple of key factors, particularly affecting major players like Ethereum.
Factors that influence the stability of altcoins
One of the main factors contributing to the uncertainty in the altcoin market, as highlighted by the analyst, is the delay in trading of the Ethereum spot ETF, despite its approval.
This delay has caused confusion and market instability, as traders and investors are unsure when they will be able to participate in these regulated investment vehicles.
Van De Poppe suggests that once the spot ETF begins trading, this could lead to an increase in investor interest and potentially trigger a market recovery, similar to reactions seen with previous ETF launches.
Furthermore, macroeconomic events such as the Consumer Price Index (CPI), Producer Price Index (PPI), and Federal Open Market Committee (FOMC) announcements also play a significant role in shaping market sentiment.
Recent data suggesting a potential easing of inflationary pressures could signal future rate cuts by the Federal Reserve, which historically benefit altcoins. These assets tend to perform well during periods of quantitative easing and low interest rates when global liquidity is high.
Despite the current challenges, Van De Poppe is optimistic about a potential recovery of the altcoin market.
The recession is expected to end soon, spurred by the early listing of the Ethereum spot ETF, which is likely to significantly increase market confidence and interest. This expected change could mark the beginning of the recovery for altcoins.
Spotlight on Solana: a case study
Taking a closer look Solana [SOL], a major altcoin, has seen a significant decline of over 50% from its peak in March this year, currently trading at $146.52. However, recent activity suggests a slight reversal may be underway.
In the last 24 hours Solana has seen a 1.6% increase in its price.
At the same time, it is open interest it also increased 0.36% over the same period, with a notable 68% increase in open interest volume at a valuation of $3.83 billion.
This positive trend coincides with SOL’s NFT transaction recently surpassing that of Bitcoin and Ethereum reported by AMBCrypto.
Source: Coinglass
Meanwhile, despite a slight decrease in the number of active addresses from over 950,000 to 902,000 in the past week, indicating reduced network activity, market sentiment may be changing.
Source: Solscan
Light That of Ethereum [ETH] Price forecast 2024-25
Ali, another prominent crypto analyst, highlighted a key support level for Solana at $141, noting a buy signal on the daily chart.
If this support holds, Solana could potentially recover in the near term, suggesting that not all hope is lost for this altcoin.