Altcoins

Is now the time to invest in altcoins? Chain link analysis shows…

Published

8 months ago

15 June, 2024

Is now the time to invest in altcoins? Chain link analysis shows...

Altcoins with market caps below $10 billion are showing signs of upcoming buying opportunities.
Chainlink (LINK) could be on the verge of recovery, as indicated by increased large transaction activity.

The altcoin market has seen a slowdown so far over the past few months. After reaching a peak market cap of $1.27 trillion in March, this segment of the crypto market has since declined by over 8%, now valued at $1.061 trillion at the time of writing.

This decline has been quite visible across all aspects of the altcoin market.

According to Jamie Coutts, chief crypto analyst at RealVision, small-cap crypto assets have significantly underperformed since Bitcoin [BTC] reached new highs earlier this year

In a detailed analysis shared on social platform

Jamie Coutts suggests that the recent downturn could be a typical mid-cycle correction within the broader cryptocurrency market cycle, which historically opens up buying opportunities.

As the market begins to stabilize, these small and mid-cap cryptocurrencies could provide valuable entry points for discerning investors. This perspective is critical as it sheds light on potential recovery trajectories, suggesting a glimmer of hope after the market storm.

Analytical Breakdown: Industry Performance and Forecasts

Jamie Coutts, shares data crypto tracking service Bitformance indicates a stark contrast in performance between different crypto sectors.

Over the past three months, while the top 200 equal-weighted index – which assigns equal weight to cryptocurrencies regardless of their market capitalization – has declined by more than 30%, the market cap index has seen a smaller decline, highlighting the resilience of larger cryptocurrencies like Bitcoin and Ethereum.

Source: Jamie Coutts

In particular, Bitcoin and Ethereum [ETH] showed declines of only 11% and 5%, respectively, demonstrating their stability compared to the broader market. Among sectors, tokens and infrastructure projects linked to the Metaverse were hit the hardest, with declines of almost 44%.

This significant slowdown across various sectors highlights the vulnerability of some altcoins during times of market stress, but also highlights the potential for recovery in a stabilizing market.

Coutts’ analysis delves deeper into the specifics of these sectors, providing a clear picture of where the market stands and what could lie ahead. He noted:

“If this is a regular mid-cycle correction that we are experiencing, which I think is likely, then expect opportunities to present themselves in mid and small caps once the market will have stabilized.

Case Study: Chainlink’s Market Position

To assess whether smaller altcoins, especially those with market caps below $10 billion, are ready for a rally, it is worth looking at a specific example from this category.

Chain link The LINK token, with a market capitalization of just over $9 billion, provides an ideal case study to explore the potential for an uptrend.

Currently, Chainlink is trading at $15.31, reflecting a 1.4% decline over the past 24 hours and a larger 12.4% decline over the past week.

This slowdown was mirrored in its number of active addresses, which has decreased significantly, from more than 90,000 in March to less than 60,000 today.

Source: Glassnode

This reduction in active addresses generally indicates a lower level of user engagement, which can harm the price stability and growth prospects of the token.

Additionally, LINK open interest, which represents the total number of outstanding derivative contracts that have not been settled, saw an increase notable decrease by 40% in the last 24 hours.

Source: Coinglass

There is, however, a positive side with a modest increase of 0.52% over the same period. This mixed signal in open interest could suggest uncertainty in the market, but also indicates some resilience among investors.

Despite these challenges, there is a glimmer of optimism. The number of large transactions involving LINK, especially those exceeding $100,000, increased significantly, from less than 90 at the start of the week to more than 200 on June 12.

Source: In the block

Realistic or not, here it is Market capitalization of LINK in BTC terms

This push, as shown in IntoTheBlock datasuggests that despite the general market slowdown, large investors, or “whales,” are actively accumulating LINK, potentially in anticipation of future price increases.

Additionally, AMBCrypto has signaled a potentially bullish future for LINK, citing a relative strength index (RSI) below 63, which traditionally indicates that a strong uptrend is forming.

Fuente

Altcoins

Long-Term Impact of Ethereum ETF on Cryptocurrency Market

Published

6 months ago

29 July, 2024

CoinFlix Staff

Long-Term Impact of Ethereum ETF on Cryptocurrency Market

Popular crypto analyst Michael van de Poppe has highlighted his altcoin portfolio approach in light of the new Ethereum ETF. In a recent Youtube videoThe analyst explained the measures he would take for this major market event.

The Ethereum ETF was listed on the stock exchange and it took time to get approval and so far there has been no significant change in price. The analyst pointed out that the long-term effect could be quite significant, comparing it to the situation of the Bitcoin ETF where the initial decline was followed by large inflows.

According to Van de Poppe, the Ethereum ETF’s trading volume on the first day of trading was about 25% of the volume Bitcoin ETF He noted that the first day of trading was marked by low inflation, and said there was a net inflow of $150 million to $160 million, which reduced the available supply.

Altcoins are poised for growth

The analyst said that as Ethereum adoption increases in the future, the supply of Ethereum will decrease, which is a deflationary model. Ethereum is up about 15% since the ETF approval, the broader market reaction has yet to happen as several sell-offs have taken place, including the Grayscale Trust.

Van de Poppe also mentioned other important market events, including the end of Mount Gox The process of repaying creditors initially caused tensions in the markets, but had little effect subsequently. It also highlighted the role of macroeconomic factors, which can lead to Fed rate cuts, which can affect markets.

In this regard, looking at van de Poppe’s strategy, he is still keen to trade within the altcoins of the Ethereum ecosystem. He stated that there is a possibility of short-term price fluctuations that may discourage many people, but the long-term still looks good due to the improvement and adaptation that has been made to Ethereum and its environment.

According to the analyst, substantial inflows could propel Ethereum towards new historic highs with estimates ranging from $5,000 to $7,000. Despite the current market fluctuations, he is confident that macroeconomic changes and greater liquidity will be favorable for altcoins.

He explained that his broad approach to altcoins, especially those associated with Ethereum, will be beneficial because the market will react differently to these events. The basis for his optimism comes from the fact that he believes that Ethereum and all associated projects are still extremely undervalued and have the potential to skyrocket as sentiment changes.

Looking ahead and market adjustments regarding the Ethereum ETF and other macroeconomic factors, the analyst remains bullish on altcoins. He suggested investors stay informed and believe that in the ever-changing world of crypto, they will eventually be rewarded.

Fuente

Altcoins

Altcoins Are Severely Undervalued, Awaiting Ethereum Move | Flash News Detail

Published

6 months ago

28 July, 2024

CoinFlix Staff

IntoTheBlock Releases Report on Institutional DeFi Trilemma

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Fuente

Altcoins

Altcoins Correct Amid ETH Decline, Grayscale Outflows | Flash News Detail

Published

6 months ago

28 July, 2024

CoinFlix Staff

Disclaimer

Fuente

Altcoins

Epic Altcoin Rally Expected for August and September

Published

6 months ago

28 July, 2024

CoinFlix Staff

Crypto analyst predicts massive altcoin rally similar to Q1 2024, urging patience and accumulation.
Bitcoin’s potential as a reserve asset and its technical patterns suggest that it will drive the rise of the cryptocurrency market.

Captain Faibik, a renowned crypto analyst, has created excitement in the cryptocurrency sector with his latest prediction. He indicated that we are on the cusp of a massive altcoin rally, similar to the one we saw in Q1 2024.

We are on the verge of a massive Altcoin rally, similar to Q1 2024📈

Keep accumulating and hold with patience. (Patience will be rewarded)

The majority of #Altcoins have already hit rock bottom and are about to escape.

In my opinion, August-September is going to be epic for Altcoins.🚀🚀#Crypto pic.twitter.com/cMdHagiaYc

— Captain Faibik (@CryptoFaibik) July 24, 2024

Accumulating and Holding Altcoins: The Path to Potential Profits

He stressed the need to accumulate altcoins and hold them patiently, as it will eventually pay off. According to him, the majority of altcoins have already bottomed out and are about to break it. He believes August and September will be epic months for altcoins.

In a chart posted by Captain Faibik, the overall crypto market cap, excluding Bitcoin and Ether, known as TOTAL3, is approaching the upper boundary of a descending channel pattern.

This context suggests a potential breakout and a significant rally towards the $1 trillion mark. Technically, the decline since mid-March is interpreted as a corrective trend for the value of TOTAL3, signaling a preparation to enter a rally structure.

Bitcoin’s influence and legislative developments suggest good prospects for the future

Furthermore, based on sentiment and technical patterns, Bitcoin, the world’s leading cryptocurrency, appears poised to lead the charge in the cryptocurrency market. Bitcoin’s performance often sets the tone for the market as a whole, and a strong move in BTC could trigger a significant rally in altcoins.

Previously, as we have already said reportedSenator Cynthia Lummis said she plans to introduce a bill at the upcoming Bitcoin conference that would require the Federal Reserve to hold Bitcoin as a reserve asset.

If this law passes, the US will treat BTC as a long-term investment rather than selling huge amounts infrequently, which could disrupt the market.

In addition, asset management firm VanEck has proposed a bold scenario in which Bitcoin Price Could Reach $2.9 Million Per BTC By 2050based on its fundamental outlook. Matthew Sigel, head of digital assets at VanEck, and senior investment analyst Patrick Bush noted that their estimate is based on Bitcoin’s adoption as a global medium of exchange and reserve asset.

As Bitcoin price increases, altcoins are expected to gain popularity, indicating the start of a bullish rally shortly after the BTC halving event.

Meanwhile, at the time of writing, the price of BTC was hovering around $67,007.99up 4.67% over the past 24 hours following a short-term correction.