Altcoin Dominance Hits 25% Support Level Amid Volatility Warnings
Cryptocurrency analysis firm Alphractal has issued a notable assessment of the altcoin markets, indicating that altcoin dominance has reached historical support levels and warning of potential high volatility in the coming days. The company emphasized the importance of being prepared for significant market movements, as many altcoins are likely to outperform Bitcoin in the coming months, regardless of whether Bitcoin rises or falls.
Alphractal’s analysis focused on two key metrics that have historically signaled serious rallies in the altcoin market. The first metric, Altcoin Dominance (excluding Stablecoins), found strong support at the 25% level, which is often tested before major altcoin rallies. The second metric, Altcoin Dominance (excluding ETH and Stablecoins), has a critical support area around 18%. Falling below this level has historically triggered periods when altcoins gained significant market share against Bitcoin. While these levels do not guarantee an “altcoin season,” they have appeared before major market moves in the past.
A prominent analysis company has recently made a significant prediction regarding the altcoin market, suggesting that a major event is on the horizon. This prediction comes at a time when investor sentiment remains weak, and technical indicators reinforce an overall bearish outlook. The recent price drop in certain altcoins suggests that these digital assets face major challenges ahead. However, there are also signals of renewed interest in the altcoin market, which could indicate a potential price rally in the near future.
The analysis company’s prediction is supported by the trend of altcoins outperforming Bitcoin in recent months. Out of 56 altcoins, 47 have shown better performance compared to Bitcoin, indicating a shift in market dynamics. This trend suggests that investors are increasingly looking beyond Bitcoin and exploring other altcoins for potential gains. The analyst maintains that while there is a bearish sentiment, the renewed interest in altcoins could lead to a price rally sooner than expected.
The prediction is also backed by the recent bullish signals flashing on several undervalued DeFi coins. These coins, including Ethereum, are leading the way amongst altcoins, rising in value and attracting significant attention from investors. Ethereum, in particular, is seen as a key player in the altcoin market, with its value expected to continue rising in the coming months.
The analysis company’s prediction is further supported by the recent announcement from a Nasdaq-traded company, which plans to invest $500 million in Fetch AI token (FET). This move is part of a broader trend of public companies allocating millions of dollars in cryptocurrency, with a focus on altcoins. The company plans to collaborate with Fetch AI on creating an AI-based platform for personal training programs, leveraging the potential of both artificial intelligence and cryptocurrency.
However, it is important to note that the $500 million investment is not guaranteed. The deal structure involves a $55 million upfront investment and a possible $444 million extension, which is not guaranteed. This raises questions about the viability of the investment and the potential impact on the market performance of FET and the stock of the company.
Despite the challenges faced by the company, the move to invest in altcoins is seen as a strategic decision to leverage the potential of the altcoin market. The analysis company’s prediction, combined with the recent trends and developments in the altcoin market, suggests that a major event is on the horizon. Investors are advised to stay informed and consider the potential opportunities and risks associated with the altcoin market.