Cardano, Solana and Ethereum are in heat, data points to more trouble for Altcoins
The bulls pushed back and momentarily halted the increasing selling pressure affecting Cardano, Solana, and Ethereum. The altcoin market has been stabilizing for the past few days, but the latest data points to potential issues in the short term.
At the time of writing, Cardano (ADA) was trading at $0.23 with sideways momentum over the past day. Solana and Ethereum recorded similar price action during this period, but these assets are gradually finding support on the weekly charts.
Cardano, Solana and altcoins may be affected
data shared The rise in Bitcoin dominance (BTC.D) is indicated by the co-founders of crypto analysis firm Glassnode via social media platform X. The metric had been slowly moving downwards, but it found some support yesterday and may be ready to regain territory lost earlier.
The metric measures the percentage of the total crypto market capitalization consisting of Bitcoin. Furthermore, whenever BTC.D reaches a certain point, it often leads to a mini altcoin bull or bear market.
The metric could indicate further losses for Cardano, Solana and other tokens in the current scenario. Glassnode co-founders said:
It’s not just ETH feeling the heat; Other major altcoins such as Solana, Cardano, Dogecoin, Tron, Polkadot and Polygon are also in deep red. With Bitcoin dominance climbing above 51% and inching closer to its 2021 peak, altcoins are really feeling the pressure. To see the resurgence of the much-awaited Altcoins season, a significant recovery will be necessary.
As seen in the chart below, the Bitcoin Altcoin Cycle Chart is moving closer to “Bitcoin Season”, as indicated by the blue line. As Bitcoin dominance moves upward into the 50% area, altcoins are likely to see losses in the short time frame.
However, the Bitcoin altcoin cycle chart shows that BTC.D is in a critical zone. The metric has returned to Altcoin season territory in the past.
Notably, Cardano, Solana, XRP, Ethereum, and other altcoins enjoyed a substantial rally in July. If Bitcoin cannot produce a catalyst, something to push it above the dominant 50% zone, Altcoins may see some gains.
Ethereum could potentially be the key to propelling altcoins into hot weather. Glassnode co-founder, on the price behavior of this cryptocurrency where did it go,
From its weekly resistance at $1,744, ETH has fallen, registering an 8% decline in just two weeks, to $1,574. While the price appears to be consolidating, the upward slope of the RSI shows that buyers are competing for higher levels. Nevertheless, should sellers resist this advance, they may (…).
Cover image from Unsplash, chart from Tradingview
source: www.newsbtc.com
