- Ethereum and XRP prices have risen over the past seven days.
- DOGE, SHIB and PEPE also showed bullishness.
Bitcoin [BTC] managed to get above $40,000 after quite a long time. This milestone in the king coin price helped the overall altcoin market cap cross a critical level.
Furthermore, X (formerly Twitter) account Rekt Capital highlighted on December 3 that the market capitalization of altcoins, excluding the top 10 cryptos, had reached a critical level.
To be precise, the market capitalization has turned the resistance level into a new support.
Altcoin Market Cap has successfully retested this old resistance as new support three weeks in a row
The down fuses on the retest also form a higher low#BTC #Crypto #Bitcoin pic.twitter.com/1GoPxC2iuE
— Rekt Capital (@rektcapital) December 3, 2023
Are altcoins planning a rally?
Considering the influence of the top altcoins on the entire market, it is imperative to see how coins are liking Ethereum [ETH] to better understand what to expect in the coming days.
According to CoinMarketCapthe price of ETH has risen by more than 10% in the past seven days. At the time of writing, it was trading at $2,251.09 with a market cap of over $270 billion.
The king of altcoins’ trading volume also soared over the past 24 hours, acting as a basis for the price increase.
AMBCrypto’s analysis of CryptoQuant facts showed that investors continued to buy derivatives ETH at a higher price at the time of writing because the financing rate was high.
Moreover, the Taker Buy Sell Ratio was also in the green, meaning that buying sentiment was dominant in the derivatives market.
Source: CryptoQuant
Other bullish metrics included Ethereum’s active addresses and transfer volume, which recorded increases in the recent past. However, the grant offer raised concerns.
On the other hand, the token’s Exchange Reserve increased. Furthermore, at the time of writing, the Exchange Netflow Total was higher than the average of the past seven days, indicating that selling pressure on ETH was high.
Source: CryptoQuant
XRP is also promising
As the price of Ethereum rose, XRP, the fifth largest crypto, also showed bullish signs. The price of the altcoin had risen by almost 5% last week. At the time of writing this was the case trade at $0.6332 with a market cap of over $34 billion.
AMBCrypto then checked XRP’s daily chart to see if it would continue its rally, which could also somewhat impact the overall altcoin market given its large market capitalization.
The MACD showed an ongoing battle between the bulls and the bears. The Bollinger Bands have indicated this XRP‘s price was in a less volatile zone, which reduced the chances of further price movements north.
Nevertheless, the altcoin’s Relative Strength Index (RSI) registered an increase and traded above the neutral line. The Money Flow Index (MFI) also followed a similar trend, indicating a continued upward trend.
Source: TradingView
Will meme coins play a role?
Meme coins have a strong presence in the crypto world, mainly due to their enormous popularity. Therefore, as altcoins prepare for a rally, we should also take a look at the meme space to see how they are doing.
We’ll start with Dogecoin [DOGE], because it is the largest meme coin by market cap. Notably, DOGE has managed to increase its price by more than 5% in the last seven days.
At the time of writing this was the case trade at $0.09015 with a market cap of over $12.8 billion. Thanks to the price increase, DOGE’s market dominance increased by 11%. Another bullish metric was AltRank, which improved over the past week.
Source: LunarCrush
Shiba Inu [SHIB]which remained in the spotlight this year due to the launch of its highly anticipated Shibarium, saw a 7% increase in value over the past week.
The showstopper, however, was Pepe [PEPE]as the meme coin registered double-digit growth last week. According to CoinMarketCap, it was up over 17% and at the time of writing it was trading at $0.000001386.
Given the performance of these aforementioned meme coins, it will therefore be interesting to see how they play their role in sparking an altcoin bull rally.
Keep an eye on Bitcoin
While a look at the state of altcoins is imperative to gauging the future, Bitcoin also plays an important role in shaping the market. Being the largest crypto, its price trend affects the performance of other cryptos to some extent.
Interesting enough, Bitcoin recently went above $40,000 for the first time in several months. Thanks to that, the social dominance of the king of cryptos increased. Positive sentiment around the currency also increased.
Source: Santiment
Read Ethereums [ETH] Price prediction 2023-24
At the time of writing, BTC was trading at $41,471.65 with a market cap of over $809 billion. Given the state of the entire market, the possibility of an altcoin rally seemed very likely.
However, the crypto market is notorious for its unpredictability, so it will be interesting to see which way the wind blows in the coming weeks.