The cryptocurrency market is currently in a correction phase, with Bitcoin price falling below $42,000. This has led to increased selling pressure on altcoins due to the sell-the-news theory for Bitcoin ETF. According to data from Coinglass, highly leveraged futures contracts worth $247.52 million have been liquidated since yesterday.
One factor contributing to the selling pressure is the potential liquidation of Bitcoin assets by Grayscale as its investors offload shares of the GBTC ETF. In the past week alone, $2.2 billion has been withdrawn from the Grayscale Bitcoin Trust.
Prominent crypto investor scottmelker believes that Grayscale’s actions are not malicious but rather a typical operational aspect of an ETF. He clarifies that Grayscale is not actively “dumping on the market” and that they are simply selling an equivalent amount of Bitcoin as people sell GBTC shares.
Despite the correction phase, there are opportunities for dip buying in certain altcoins like Solana (SOL), Celestia (TIA), and Decentraland (MANA).
Solana(SOL) Price Nearing A Decisive Breakout
The price of Solana (SOL) is currently forming a bullish flag pattern within two parallel trend lines. This pattern suggests a temporary consolidation phase in an overall upward trend, providing a strategic entry point for investors. The upcoming release of Solana Mobile’s second smartphone, following the success of the Saga phone, further reinforces the positive outlook for SOL. With 30,000 preorders for the crypto-centric device within just 30 hours, a successful breakout from the flag pattern could lead to a 30% rally targeting the previous resistance level of $126.
Decentraland(MANA) Price Eyes $0.7 As Demand Pressure Surge at Market Dip
Despite market uncertainty surrounding the Bitcoin ETF launch, Decentraland (MANA) has been experiencing a correction trend since December. The coin has stabilized above 61.8% Fibonacci retracement levels and is now eyeing a breach of immediate resistance at $0.5. If successful, this could pave the way for a rally past $0.6 and potentially reach $0.7. The MACD and signal line nearing a bullish crossover also indicate that buyers are regaining strength for a new recovery.
Celestia (TIA) Price Offer Dip Opportunity Amid Market Correction
Celestia (TIA) has shown significant recovery in the past two months, supported by an ascending trendline. The current correction phase has led to a new top at $20.39, resulting in a 10.3% decline in the coin’s value. However, if history repeats itself, TIA should rebound from the lower trendline around $15.34 and potentially surge by 37% to reach $25. The 20-day and 50-day Exponential Moving Averages (EMAs) provide additional support for the coin during market corrections.
Hot Take: Altcoins Present Dip Buying Opportunities Amid Market Correction
Despite the ongoing correction phase in the cryptocurrency market, there are opportunities for dip buying in altcoins like Solana (SOL), Decentraland (MANA), and Celestia (TIA). These coins have exhibited positive price patterns and show potential for a rally once the broader market stabilizes. It’s important to analyze each coin’s technical indicators and market demand before making any investment decisions. Consider factors such as upcoming releases, investor sentiment, and support levels to determine the suitability of dip buying opportunities in these altcoins.
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