Impressive Altcoin Performance This Year! 🚀
Altcoins are consistently showing outstanding performance this year, registering price surges exceeding 250%. As this trend unfolds, traders are keen to identify what the future holds for this ongoing crypto rally: will it continue its upward trajectory or enter a correction phase?
Altcoins Surge: Over 250% Gains and Record Funding Rates 📈
Over the past thirty days, altcoins have demonstrated remarkable performance, achieving gains of more than 250% in value.
Currently, notable surges include Cardano (ADA) rising by 250%, Stellar (XLM) at 432%, Hedera (HBAR) with a 577% increase, XRP climbing by 352%, and Algorand (ALGO) reaching 328%.
This impressive rally began around thirty days ago, coinciding with the announcement of Donald Trump, a supporter of cryptocurrency, as the winner of the USA 2024 presidential elections.
As the situation progresses, market participants are on the lookout for indicators that could reveal the potential trajectory of these altcoins. One critical aspect to consider is the funding rate associated with these cryptocurrencies.
Data from CoinGlass indicates a notable increase in the 30-day funding rate for perpetual futures, with bullish traders paying between 4% and 6% monthly to sustain leveraged positions.
This funding rate is starting to appear significant; however, it has not yet reached levels similar to the 25% recorded during last February’s rally.
Assessing Funding Rates: Is More Bullish Momentum Possible? 🔍
Diving deeper into specifics, analyzing the examples of ADA and XRP, you can see that while their funding rates are elevated compared to the past six months, they remain below the peaks reached over the last year.
This observation suggests that there may still be potential for further increases in the prices of these altcoins, driven especially by exerting leverage.
However, for more clarity, traders should evaluate the funding rates of altcoins in conjunction with other indicators to form a holistic picture.
In general, if the 30-day funding rate stays within the 4-6% range, it indicates a manageable situation, minimizing the risk of a sharp wave of liquidations.
Current Price Predictions for Cryptocurrencies 📊
Recently, analyst Dan Gambardello expressed his price expectation for ADA at $3, which could be attained soon if it follows a similar path as XRP.
Gambardello highlights that, should there be a growing demand for spot ADA ETFs in the USA for Cardano, reaching a new all-time high might be on the horizon.
On the subject of Ethereum, Bitget Research’s analyst Ryan Lee predicts that ETH is expected to trade between $3,000 and $4,500 by December 2024. Currently, ETH is priced at $3,851, indicating a 4% increase over the past day and a 7% rise over the previous week.
Regarding Dogecoin, the arrival of Valour’s ETP has led analysts to forecast that DOGE may reach a price of $0.50 in the short term, significantly fueled by the potential buzz surrounding the memecoin. In fact, DOGE has already hit $0.46 in the last 24 hours.
Conclusion: Staying Vigilant 📅
This year has proven to be a dynamic period for altcoins, with substantial price increases and a keen interest in their funding rates. As the landscape unfolds, maintaining vigilance and being well-informed will empower you to navigate the potential opportunities that arise in the market.
Let these insights guide your understanding of current market trends and predictions as you consider the future of the cryptocurrency landscape.
Sources: CoinGlass
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