- Altcoin Bull Run: A Look at Market Conditions and Potential Upsides.
- Ethereum’s Struggles: Challenges and Indicators Affecting ETH’s Performance.
- BNB’s Mixed Signals: MACD Crossover vs. Social Metrics Surge.
According to a recent report, October may hold the promise of a significant bull rally for altcoins, offering hope to the broader cryptocurrency market.
Altcoins like Ethereum (ETH), BNB Chain (BNB), and Ripple (XRP) have been delivering lackluster performances for some time now, leaving investors disappointed. Nevertheless, recent data hints at a potential turnaround.
As we step into the final quarter of 2023, the crypto market could experience heightened volatility, and here’s why.
Is the Altcoin Market Preparing for a Bull Run?
Prominent crypto analyst Mags recently shared insights about the current market conditions via a tweet. According to the tweet, the altcoin market cap appears to be following a substantial Wyckoff accumulation pattern.
#Altcoin Bull Run Is Finally Here ?? 🔥
The Altcoin Market Cap has been trading inside a Massive Wyckoff Accumulation Pattern 📈
This Pattern consists of 5 Phases :
• PHASE A : This phase marks the end of the downtrend as supply weakens after intense selling.
• PHASE B :… pic.twitter.com/h9B9e0YfHh
— Mags (@thescalpingpro) September 30, 2023
This pattern consists of five phases, with the chart currently in the fourth phase, known as Phase D. During Phase D, demand is expected to push the price towards the upper resistance lines.
Upon completing Phase D, Phase E is anticipated, during which the price is set to break out, demand will dominate, and an uptrend will become evident to all.
While the aforementioned data carries optimism, a closer examination of top altcoins provides a more nuanced perspective of what lies ahead. For instance, Ethereum, the largest altcoin by market capitalization, has struggled to breach the $1,700 mark recently.
Another bearish sign was a -57.66% decrease in the total number of ETH coins transferred within the last 24 hours. Additionally, its takers’ buy/sell ratio was in the red, indicating a prevailing selling sentiment in the derivatives market.
These factors heightened the likelihood of a forthcoming downtrend.
Assessing Other Altcoins
While Ethereum’s performance was underwhelming, the second-largest altcoin, BNB, also failed to impress investors, with marginal movement over the last 24 hours. At the time of writing, BNB was trading at $215.89, with a market cap exceeding $33 billion.
However, BNB displayed a bullish crossover on its MACD, hinting at potentially more volatile price movements to the upside. The Relative Strength Index (RSI) also registered an uptick, moving above the neutral mark.
Nevertheless, its Money Flow Index (MFI) took a downturn. Despite some favorable market indicators for BNB bulls, its social metrics saw a significant surge. LunarCrush reported a more than 33% increase in BNB’s social engagement last week, and its Altrank and bullish sentiment also notably improved, indicating a potential price uptrend.
XRP exhibited a similar slow-moving trend over the last 24 hours in terms of price, accompanied by a drop in trading volume after a significant spike. However, its 1-week price volatility increased, and the token’s Binance Funding Rate remained in the green, reflecting its popularity in the derivatives market.
Further bullish signs emerged upon analyzing XRP’s daily chart. According to TradingView, XRP’s Chaikin Money Flow (CMF) gained upward momentum, and the token’s Relative Strength Index (RSI) also trended upward, fostering hope for a price uptick in the coming days.
At the time of writing, XRP was trading at $0.5207, with a market cap exceeding $27 billion.
Are Memecoins Gaining Momentum?
In discussing altcoins, it’s essential to include top memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB). Notably, both memecoins did not exhibit signs of decoupling.
Their daily charts showed positive movements, with SHIB’s price increasing by nearly 2% in the last 24 hours, which is a promising development.
At the time of writing, SHIB was trading at $0.000007473, while DOGE had a value of $0.06266. Considering the performance of major altcoins, the possibility of an October bull rally cannot be discounted.
However, given the cryptocurrency market’s notorious unpredictability, the upcoming market dynamics will undoubtedly be fascinating to observe.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.