Bulls Push Back, but Cardano, Solana, and Ethereum Could Face Short-Term Challenges
The altcoin market, including Cardano (ADA), Solana, and Ethereum, has seen a temporary halt in the increasing selling pressure. While these assets have stabilized over the past day, new data suggests potential issues in the short term.
Bitcoin Dominance on the Rise
Data shared by the Co-Founders of crypto analysis firm Glassnode indicates a rise in Bitcoin Dominance (BTC.D). This metric measures the percentage of the total crypto market capitalization comprised of Bitcoin. When BTC.D reaches certain levels, it often leads to mini altcoin bull or bear markets.
This rise in Bitcoin Dominance could potentially result in further losses for Cardano, Solana, and other tokens. The Glassnode Co-Founders have noted that major altcoins are currently deep in the red as Bitcoin’s dominance climbs past 51%.
Potential Altcoin Season
The Bitcoin Altcoin Cycle chart suggests that altcoins may see losses in the short term as Bitcoin Dominance trends upwards. However, there is a critical zone where BTC.D has bounced back into the Altcoin Season Territory in the past.
If Bitcoin fails to surpass the 50% dominance area and produce a catalyst, altcoins like Cardano and Solana could potentially see profits. Ethereum’s price action may hold the key to propelling altcoins into a hot season.
Ethereum’s Role
The Glassnode co-founder mentioned that Ethereum’s price action is crucial. While it has experienced a decline recently, with resistance at $1,744 and an 8% drop in two weeks, Ethereum’s upward slope of the RSI suggests buyers are vying for higher levels. If sellers resist this advance, it could impact the altcoin market.
Hot Take: Altcoins Face Short-Term Challenges Amidst Bitcoin Dominance
While bulls have temporarily pushed back against the selling pressure impacting Cardano, Solana, and Ethereum, the altcoin market faces potential challenges in the short term. The rise in Bitcoin Dominance suggests possible losses for these altcoins, as seen in the past. Altcoin season may depend on whether Bitcoin can surpass the 50% dominance area and catalyze profits for tokens like Cardano and Solana. Ethereum’s price action will play a significant role in determining the direction of the altcoin market. As the market continues to evolve, it remains crucial to monitor these dynamics closely.
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