Altcoin rally: Why coins FIL, KLAY, NEO, MIOTA are now the exception
Not all altcoins have rallied this season, there are DeFi and ERC-20 tokens that had an extended rally before ETH’s price hit a new ATH. There are more altcoins that are currently in the buy zone, and then there are rallying ones. The DeFi tokens recovering from the drop in BTC wrapped in DeFi are now rallying or gearing up for a price rally with increasing liquidity. Among others, FIL’s price dropped over 12% in the past 24 hours.
The token’s price has taken a dip after an extended price rally and with a near 40% drop in trade volume in the past 24 hours, it is likely that FIL’s price may drop further before recovery. Based on the recent price action, from the past 30-days, FIL is currently in the buy zone.
Grayscale’s launch of FIL on its platform had an impact on FIL’s price, however with dropping trade volume the price has dropped. There are fewer factors contributing to FIL’s price, with more altcoin options for investment, FIL may not be likely to offer double-digit returns in the next week, however, buying at the current price level is with the long-term bullish view.
Despite the current sentiment being bearish, it is largely bullish in the long term. Contrarians may book unrealized losses at the current price level, selling FIL for tokens that are currently on an upward trend. Another altcoin making its way to the top 10 is KLAY’s price which dropped over 3% in the past 24 hours and as its price drops, traders may start accumulating.
What’s similar in KLAY and FIL’s narrative is the anticipation of further price correction before the price starts an upward trend and retail traders book profits. Currently, the volume on spot exchanges does not indicate a bullish sentiment and it is likely that there may be a further drop.
Similarly, in the case of altcoins like NEO and MIOTA, the trade volume is up 25% and its increasing trade volume may lead to an increase in price, however, this may not be true in every case. In the case of MIOTA, the trade volume has dropped and accumulation may have already begun. Altcoins like FIL, MKR, NEO, and MIOTA are starting the price rally and there may be further gains in the following week.