A Bullish Shift in Altcoins Predicted as Technical Indicator Turns Green
An analyst on X has predicted an imminent surge in altcoins, comparing it to the sharp gains seen in 2017 and 2021. The optimism stems from a change in the Gaussian Channel, a technical indicator used to assess market momentum, which has recently shifted from red to green. This suggests a potential bullish shift for leading altcoins like Ethereum, Solana, and Dogecoin in the coming days.
Confirmation Needed for the Upswing
However, it is important to note that a comprehensive breakout above immediate resistance is required to confirm this upswing. If this occurs, it could lead to a “parabolic” rally in the altcoin market.
Bitcoin Rally Sparks Overall Market Optimism
The broader crypto market is currently bullish due to the encouraging Bitcoin rally. Bitcoin is trading above $50,000 and is expected to register further gains and potentially break November 2021 highs.
Solana and Ethereum Benefit from Surging Bitcoin Prices
Coins like Solana and Ethereum, as well as meme coins like BONK, have greatly benefited from the surge in Bitcoin prices. Despite recent network outages questioning Solana’s reliability, SOL is now trading above $100. In January, it reached a peak of over $125.
Growth in Altcoin Market Cap
The altcoin market cap has nearly doubled from around $475 billion in late 2022 to over $910 billion as of mid-February, according to CoinMarketCap data. During the peak in November 2021, the cumulative market cap of altcoins exceeded $1.6 trillion.
Hot Take: Altcoins Poised for a Major Surge
With the Gaussian Channel shifting to green, altcoins like Ethereum, Solana, and Dogecoin could experience significant gains in the near future. While confirmation through a breakout above immediate resistance is needed, the overall bullish sentiment in the crypto market, driven by the Bitcoin rally, bodes well for altcoin growth. Investors and institutions are leveraging spot Bitcoin exchange-traded funds (ETFs) to hold Bitcoin, further driving demand. This increased demand has already benefited coins like Solana and Ethereum, which have reached impressive price levels. The altcoin market cap has also seen substantial growth, signaling potential opportunities for investors.
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