Altcoins
Matured Altcoins Losing Strength – Forex Action
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Neither the meme mania in stocks, the overall positivity of stock indices, nor the weakening of the dollar seems to be helping cryptocurrencies right now. The cryptocurrency market capitalization fell by 0.1% and has been hovering around the current level of $2.29 trillion over the past seven days.
Bitcoin is trading near $61.9k, forming a sequence of higher intraday lows on daily time frames. Meanwhile, a month-long downside resistance is still in place. Bitcoin is approaching the top of this triangle, which could lead to a sharp increase in volatility. The short-term trigger is expected to be the US inflation report, which has had a strong impact on markets, including cryptocurrencies, in recent months.
The medium-term picture also indicates that some older altcoins are going through a rough patch. In addition to Ethereum, Cardano has consolidated near the lower end of its range in recent months, having already given up more than half of its gains from the October lows. It fell back below the 200-day average and formed a “death cross.” Litecoin also did not recover from the sharp hit in April, testing its 200-day average.
XRP is trading around the $0.5 level, a historically important level that has seen prolonged consolidation since September 2022. An upside support line can be drawn through the area of two-year lows, but XRP has fallen below that level on April 12-13. . This line acted as resistance for the next two local peaks in late April and early May. All this creates a bearish scenario with a pullback to long-term support at $0.25-30.
News background
Onchain indicators indicate that Bitcoin is going through a phase of consolidation and potential correction. Glassnode warned that market participants should exercise caution and consider the possibility of panic sell-offs.
According to Bernstein, Bitcoin’s lateral consolidation after the halving is great for public miners in their competition for hashrate. However, Kaiko believes that the risks of a large-scale sell-off of BTC by miners could increase in the market due to a sharp decline in post-halving revenues. According to Blockchain.com, the average daily revenue of Bitcoin miners has returned to 2023 levels.
Solana could rise to $400 by November 2024, and the catalyst for the rally will be a wave of meme coins dedicated to the US election campaign, Merkle Tree Capital has suggested. Meme coins Jeo Boden (BODEN) and Doland Tremp (TREMP) have helped Solana surpass Ethereum in trading volume.
According to Wublockchain, spot trading volume on major cryptocurrency exchanges dropped by nearly 38% in April. Against this backdrop, traffic on the largest exchanges fell by an average of 22%.
According to Deribit, the options market has increased bets on Ethereum, surpassing $3600 in June.