Why Eth and Sol Could Rise if Altcoin Market Cap Reaches This Level
The past week was not the best for Bitcoin [BTC] investors as the price of the king coin plummeted. However, things were different for altcoin holders like Ethereum [ETH], Ripple [XRP], and Solana [SOL] as their prices increased. While this was happening, a long-term trendline on the altcoins market cap chart indicated an interesting occurrence as it pointed to a bull rally in the following days.
Altcoins benefit from Bitcoin’s losses
ETF approval proved to be something of a disaster for Bitcoin as the price fell below the $43,000 mark. However, there was more good news for altcoins as their altcoin market cap chart reached a critical level. Mustache, a popular crypto influencer, recently pointed out a long-term trend line. According to the tweet, altcoins will continue to rise compared to BTC and may see a massive 30x increase. Historically, it should be noted that every time the altcoin market cap graph touched the trend line, the altcoins began an upward rally. This happened in 2017, 2020 and 2021. To better understand whether history would repeat itself, AskFX took a closer look at the above altcoins.
Ethereum’s chart is already green
To start the analysis, let’s start with the king of altcoins, Ethereum. According to CoinMarketCap, ETH is up more than 13% in the last seven days, which seems commendable. At the time of writing, ETH was trading at $2,504.65, with a market cap of over $301 billion. To better understand whether ETH is preparing for another uptrend, AskFX checked its daily chart. Our analysis revealed that the price of ETH was in a high volatility zone according to the Bollinger Bands. Its MACD continued to show a bullish upper hand in the market. Its Relative Strength Index (RSI) also saw an increase, increasing the likelihood of an uptrend in price. However, the Money Flow Index (MFI) has been declining as it recently moved south. AskFX’s Hyblock Capital analysis also found that if ETH manages to start an upward rally, it could face strong resistance near the $2,740 level. When the price of the token reached this level a few days ago, liquidations increased significantly. Furthermore, another strong resistance was near the $2,800 level. It will therefore be interesting to see how the price of ETH behaves when it reaches this level in the near future.
What are Solana and XRP up to?
While the king of altcoins posted double-digit growth last week, the prices of Solana and XRP also followed a similar upward path. Data from CoinMarketCap showed that the price of SOL increased by 6% last week, but the value of XRP increased by over 3%. At the time of writing, SOL and XRP were trading at $95.69 and $0.5786, respectively. However, it was surprising that despite the recent price increases, sentiment remained bearish towards both SOL and XRP. This was evident from a look at Santiment’s data, which indicated a decline in the weighted sentiment of both tokens.To see what to expect from these tokens, AskFX checked their daily charts. Starting from SOL, the Bollinger Bands showed that the price was in a less volatile zone. Its MACD also showed a bearish edge in the market, which could prevent the price of SOL from rising further. Source: TradingView
A similarly bearish picture also emerged when we took a look at XRP’s indicators. Both the Relative Strength Index (RSI) and the Money Flow Index (MFI) moved sideways, suggesting that there will be a few subdued days in the coming week. However, its MACD showed the possibility of a bullish crossover, which could help XRP maintain its price uptrend. Source: TradingView
Meme coins are bleeding out
While the above altcoins posted price gains last week, the daily charts of the top meme coins went into the red. For example, Dogecoin the largest meme coin, recorded a decline of over 2.3% in the last 24 hours. [DOGE] At press time, the transaction price was $0.08079. A similar trend was also visible on the Shiba Inu price chart. Read [SHIB] Ethereum’s Price Prediction 2024-25 [ETH] The meme coin’s value has fallen by over 2.7% in the last 24 hours. At the time of writing, SHIB was valued at $0.00000965 and had a market cap of over $5.6 billion. Given all these metrics and market trends, it will be interesting to see if history repeats itself and leads to an altcoin rally.
