- Altcoins are showing signs of recovery, with potential for significant gains.
- Analysts highlight strong market moves and positive technical patterns that indicate an uptrend.
The altcoin market is showing signs of reversing its recent downward trend. The market fell from a peak of over $1.26 trillion in March to a low of $960 billion on June 24.
With the arrival of July, a significant rebound has been observed. Over the past few days, the altcoin market has seen a surge of almost 3%, once again surpassing the $1 trillion mark, currently valued at $1.025 trillion.
This altcoin market rally is closely linked to a parallel recovery in Bitcoin [BTC]BTC has risen by around 2.7% over the past week, with prices fluctuating between $62,000 and $63,000.
An analyst from Crypto Banter’s The Sniper Trading Show marked that Bitcoin’s trading in this range indicates a bullish push over the past 24 hours, illustrated by the formation of a “pin bar candle”.
Such a pattern often indicates a potential bullish reversal. During The Sniper Trading Show, the analyst highlighted how the bulls have been pushing the price higher at the weekly and monthly close. This signals strong upward momentum.
Altcoins could surge 40% this week
The analyst noted that altcoins, including prominent names like Solana [SOL]show significant activity. Analyzing the Ethereum to Bitcoin chart, he pointed to a possible trend reversal and a rebound in the value of Ethereum.
He noted that many altcoins are showing potential on higher time frames. With robust RSI levels indicating a bullish divergence, these coins could soon surpass both Ethereum and Bitcoin.
Furthermore, the overall sentiment in the crypto market seems to be shifting positively. The analyst highlighted the declining dominance of USDT as a signal that the market bottom could be forming, paving the way for substantial gains.
This sentiment is reinforced by strategic moves in coins like Cardano [ADA]RUNE, Injective [INJ]Chain link [LINK]Phantom [FTM]Solana and Polkadot [DOT]all of which form a bullish pattern that can lead to significant price increases.
The analyst predicts a robust performance from altcoins in particular in the coming week, with gains of 20-40%.
While he is bullish on altcoins, he is more cautious on Bitcoin, suggesting a gradual price increase but not expecting an immediate rise to $70,000.
Observed Bullish Signals: Cardano as a Case Study
To assess potential bullish trends in altcoins, Cardano [ADA] serves as an illustrative case study. We will look at Cardano’s key metric for any notable signs of bullishness. It may lend more credence to the analyst’s prediction of a 40% upside for altcoins.
First of all, it’s worth noting the asset’s market performance — ADA has been showing robust performance recently, rising 2.5% over the past day, continuing a week-long uptrend that has seen a total gain of over 5%. ADA was trading at $0.4064 at the time of going to press.
The assets’ open positions, a measure of the total number of outstanding derivatives contracts such as futures and options that have not yet been settled, reflect the upward price trend.
According to Coin glassADA’s open interest has increased by 3% in just one day and now stands at $223.28 million.
This increase corresponds to an increase of approximately 1% in open volume, which now stands at $257.59 million, indicating growing trader engagement.
Source: Coinglass
In addition, whale activity in ADA has also increased significantly. Facts Research from IntoTheBlock shows a sharp increase in large transactions (over $100,000), from less than 4,000 transactions last month to over 5,000 transactions today.
This increase in high-value transactions is an indication of growing interest from large investors, which could potentially have a positive impact on ADA’s price.
Source: IntoTheBlock
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These robust statistics in ADA’s trading activity indicate that both Cardano and the broader altcoin market are gearing up for a bullish rise, as the analyst on Crypto Banter expected.
This optimistic scenario was further supported by an earlier AMBCrypto report, which showed that the recent negative sentiment surrounding ADA was a precursor to a significant price increase.