The cryptocurrency market hasn't been uniform across all assets. While Bitcoin (BTC) has seen positive performance, top coins like Ethereum (ETH) and Ripple (XRP) have struggled. The potential for altcoins to gain momentum and rally largely hinges on Bitcoin's performance.
Recognizing the onset of an altcoin season is crucial as it can provide insights into when and to what extent altcoins might experience growth.
Juan Pellicer, a Senior Researcher at IntoTheBlock, points out that various signals indicate the arrival of an altcoin season.
"In previous market cycles, altcoin seasons typically commence with a sustained decline in BTC dominance, signaling a shift in market sentiment towards altcoins. While this trend serves as a helpful leading indicator, identifying potential winners in the upcoming altcoin season requires a deeper analysis of advanced on-chain metrics," Pellicer explained.
"For example, the average duration for which holders retain an asset can reflect its resilience. Assets held for longer periods by investors may undergo more sustained price increases during bullish markets. Moreover, on-chain data pertaining to whale activity is extremely valuable," he further elaborated.
Bitcoin (BTC)
Bitcoin's price surpassed market expectations by experiencing a 5% increase over the week, reaching $71,160, nearing the critical resistance level of $71,800. Overall market signals remain optimistic, with Bitcoin exhibiting movement within a flag pattern, suggesting a potential 45% surge ahead.
Nevertheless, a more pragmatic perspective anticipates a rise to the existing all-time high of $73,650. Surpassing this level would establish a new ATH for Bitcoin.
Ethereum (ETH)
While Ethereum's price isn't showing bullish signs currently, it's maintaining the momentum it gained last month. The altcoin broke out of a descending wedge and briefly reached $3,980 before experiencing a decline.
ETH is facing difficulty in closing above the 61.8% Fibonacci Retracement level of $3,829, which also serves as a crucial support level during bull runs. Reclaiming this level would potentially push the price past $4,000.
However, if Ethereum fails to establish this level as support, a downturn may occur. In this scenario, ETH could drop on the daily chart, testing support levels at $3,695 or the 50% Fibonacci line at $3,582.
Ripple (XRP)
XRP's price performance has been disappointing, currently trading at $0.52. The altcoin is showing signs of forming an ascending triangle pattern and awaits a breakout. This pattern, characterized by a horizontal resistance line and a rising support line, indicates growing buying pressure, potentially leading to a breakout above the resistance level.
However, despite these bullish indications, the anticipated rise has not yet materialized. Currently, the altcoin has only marginally closed above the 23.6% Fibonacci Retracement level. This level is significant as it serves as a support floor during bear markets. If XRP manages to secure this level, it could prevent further decline in its price.
June 2024, Cryptoniteuae