Led by ETH, BNB, and XRP, altcoins chart a new course
- ETH was up by nearly double digits last week, but bearish sentiments remained high.
- BNB’s daily chart revealed quite a few bullish indicators, as was the case with XRP.
After quite a wait, the crypto market was showing bullish signs, as a result of which investors could finally enjoy profits. Notably, the charts of top coins like Bitcoin [BTC] and Ethereum [ETH] were painted green.
Read Ethereum’s [ETH] Price Prediction 2023-24
Interestingly, while this happened, the global altcoin market cap entered a bullish pattern.
If history is to repeat itself, then not only Ethereum, but other altcoin investors could also expect their values to pump. Therefore, taking a closer look at other top altcoins provided a better understanding of what might happen.
Ethereum is leading the altcoin pack
A look at altcoin’s cumulative market cap revealed a unique development. Since 2016, there have been several instances of the altcoin market cap entering a falling wedge pattern.
Whenever such episodes happened, they were followed by a promising bull rally. To be precise, such patterns were noted multiple times in 2018, 2021, and now in 2023.
As a result, there is a chance that the value of altcoins will skyrocket in the coming days. In fact, the crypto market had already turned bullish. As per CoinMarketCap, ETH, the king of altcoins, was already up by over 12% over the last seven days.
At the time of writing, it was trading at $1,693.13 with a market cap of over $203,521,509,552. It was surprising to note that despite the recent uptick, ETH’s social engagement dropped last week.
Not only that, but LunarCrush’s data revealed that bullish sentiment around ETH had also plummeted by 41%, which looked concerning. Nonetheless, if metrics are to be believed, ETH’s bull rally might continue further.
This seemed to be the case as its exchange reserve was dropping, meaning that it was not under selling pressure.
Investors from the US and Korea were buying the token, which was evident from ETH’s green Korea Premium and Coinbase Premium. In fact, derivatives investors were also considering buying ETH as its Funding Rate was green.
Thus, investors were willing to buy ETH at a higher price, increasing the chances of a continued uptrend. Its Taker Buy/Sell Ratio, according to CryptoQuant, was also green, suggesting that buying sentiment was dominant in the futures market.
A look at the broader crypto market
Like Ethereum, other top coins like Ripple [XRP] and Binance Coin [BNB] have also turned bullish in the recent past. As per CoinMarketCap, while BNB’s price rallied by over 4% last week, XRP’s value managed to go up by over 6% during the same period.
At press time, BNB and XRP were trading at $221.54 and $0.5229, respectively.
Is an altcoin bull rally inevitable?
BNB’s market indicators were also looking optimistic, suggesting a further hike in its price over the coming days. For example, the MACD displayed a clear bullish upper hand in the market. The Chaikin Money Flow (CMF) was above the neutral mark.
Moreover, BNB’s Money Flow Index (MFI) also rested comfortably above the neutral mark.
However, the Relative Strength Index (RSI) might cause trouble as it was near the overbought zone, which could increase selling pressure on BNB and, in turn, drop its price.
Surprisingly, quite a few of the market indicators for XRP had recently turned in bears’ favor. This could potentially put an end to its bull run.
Notably, XRP’s Chaikin Money Flow (CMF) registered a sharp downtick of late. The RSI took a sideways path, which could decrease XRP’s growth rate in the days to follow. Nonetheless, the MACD and MFI remained in the buyers’ favor.
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After a closer look at the market, it was pretty evident that the bulls were bucking as the prices of most altcoins rose. Moreover, Ethereum and BNB’s indicators remained bullish. Though XRP’s state was a bit concerning, the possibility of altcoins’ pumping their price further seemed likely.
Nonetheless, as the crypto market is infamous for its unpredictability, it will be intriguing to watch where the altcoin market cap reaches over the coming weeks.