Why ETH, SOL could rally as altcoin market cap reaches this level
- A long-term trend line suggested that altcoins might initiate bull rallies in the coming days.
- SOL and XRP’s indicators looked bearish, and meme coins like DOGE and SHIB’s charts were red.
The past week has not been the best for Bitcoin [BTC] investors, as the price of the king coin plummeted. However, things for altcoin holders like Ethereum [ETH], Ripple [XRP], and Solana [SOL] were different as their prices increased.
While that happened, a long-term trend line plotted on the altcoins market capitalization chart flagged an interesting incident, as it suggested a bull rally in the days to follow.
Altcoins are benefiting from Bitcoin’s losses
The ETF approval turned out to be somewhat of a disaster for Bitcoin, as its price went under the $43,000 mark. However, there was more good news for altcoins, as their altcoin market cap graph reached a critical level.
Moustache, a popular crypto influencer, recently pointed out a long-term trend line. As per the tweet, altcoins will continuously rise against BTC and might witness a massive growth of over 30 times.
Never fade an 8 YEAR Trendline on ETH/BTC.
Bottom is in imo.
From now on, Altcoins will continuously rise against $BTC.
Anyone who was around in 2017 or 2021 knows what I'm talking about.
From this point, many Altcoins have made 30x or more.
My Body is so ready pic.twitter.com/eQbOLkNhvJ
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) January 13, 2024
In history, it is to be considered that each time the altcoin market cap graph touched the trend line, altcoins began bull rallies. This occurred during 2017, 2020, and 2021.
To better understand whether history would repeat itself, AMBCrypto took a closer look at the aforementioned altcoins.
Ethereum’s chart is green already
To begin the analysis, let’s start with the king of altcoins, Ethereum. According to CoinMarketCap, ETH was up by more than 13% in the last seven days, which looked commendable.
At the time of writing, ETH was trading at $2,504.65 with a market cap of over $301 billion.
To better understand whether ETH was preparing for a further uptrend, AMBCrypto checked its daily chart. Our analysis revealed that ETH’s price was in a high volatility zone as per the Bollinger Bands.
Its MACD continued to display a bullish upperhand in the market.
Its Relative Strength Index (RSI) also registered an uptick, increasing the chances of a price uptrend. However, the Money Flow Index (MFI) was bearish as it recently moved southwards.
AMBCrypto’s analysis of Hyblock Capital also found that If ETH manages to start a bull rally, it might face strong resistance near the $2,740 mark.
Notably, when the token’s price reached that level a few days ago, liquidation surged substantially. Going above that, another strong resistance level was near the $2,800 mark.
It will thus be interesting to see how ETH’s price behaves if it reaches that level in the near term.
What are Solana and XRP up to?
While the king of altcoins registered double-digit growth last week, SOlana and XRP’s prices also followed a similar route of increment. CoinMarketCap’s data revealed that while SOL’s price surged by 6% last week, XRP’s value increased by over 3%.
At the time of writing, SOL and XRP were trading at $95.69 and $0.5786, respectively.
However, it was surprising to note that despite the recent price upticks, sentiments around both SOL and XRP remained bearish. This was evident from a look at Santiment’s data, which pointed out drops in the Weighted Sentiment of both tokens.
To see what to expect from these tokens, AMBCrypto checked their daily charts. Starting with SOL, its Bollinger Bands revealed that its price was in a less volatile zone.
Its MACD also displayed a bearish advantage in the market, which could restrict SOL’s price from moving up further.
A similar bearish picture was also revealed when we took a look at XRP’s indicators. Both its Relative Strength Index (RSI) and Money Flow Index (MFI) took a sideways path, suggesting a few slow-moving days in the coming week.
However, its MACD did display the possibility of a bullish crossover, which could help XRP maintain its price uptrend.
Meme coins are bleeding
While the aforementioned altcoins registered price gains in the last week, the top meme coins’ daily charts turned red. For instance, Dogecoin [DOGE], the largest meme coin, witnessed a drop of over 2.3% in the last 24 hours.
At press time, it was trading at $0.08079. A similar trend was also noted on Shiba Inu’s [SHIB] price chart.
Read Ethereum’s [ETH] Price Prediction 2024-25
The meme coin’s value dropped by over 2.7% in the last 24 hours. At the time of writing, SHIB had a value of $0.00000965 and a market cap of over $5.6 billion.
Considering all these metrics and market trends, it will be intriguing to watch whether history will repeat itself, resulting in an altcoin rally.