- Top altcoins such as Ethereum, Solana and BNB posted big gains in the past 24 hours
- However, the statistics and technical indicators were not all bullish
Bitcoin’s past 24 hours have been productive, with the cryptocurrency climbing back above $63,000 on the charts. As expected, most altcoins in the market followed suit, with their charts also turning green. However, the latter’s performance caused a decline Bitcoins [BTC] dominance. In fact, it reached such a critical level that a new altcoin season could now be upon us.
Altcoin season has arrived
Captain Faibik, a popular crypto analyst, recently shared one tweet to draw attention to an interesting development. Likewise, Bitcoin’s dominance is now moving within a rising wedge pattern. What does this meanIt is likely that BTC’s dominance will decline in the coming days. This would be a positive sign for altcoins as their market capitalization is likely to increase.
Mags, another famous crypto analyst, also shared one tweet in which a historical event is mentioned. The tweet stated that the altcoin market was in an accumulation phase in 2020. That ended in the second half of the year, setting off a massive bull rally.
The analyst believes that a similar trend will be seen this time, further increasing the chances of an altcoin season soon. If the rally takes place, the market capitalization of altcoins can be expected to rise dramatically.
A look at the best altcoins
What better way to see if altcoins are preparing for a rally than by checking the performance of the top alts? According to CoinMarketCap, Ethereum [ETH], the king of altcoins, has increased its price by over 4.5% in the last 24 hours. At the time of writing, it was trading at $3,111.72 with a market cap of over $373 billion.
Like ETH, BNB And Solana [SOL] also turned bullish as their values rose 3.6% and 5% respectively. At the time of writing, BNB was trading at $586, while SOL was valued at $145.2.
However, it was surprising to see that despite the recent price increases, investor confidence in these top altcoins remained low. AMBCrypto’s analysis of Santiment’s data showed that ETH, SOL, and BNB’s weighted sentiments all remained in the negative zone.
Source: Santiment
However, the good news was that Ethereum’s open interest rose slightly along with the price. An increase in this measure is usually a sign that the prevailing price trend is likely to continue.
SOL’s open interest took the lead from ETH and also registered an upswing. On the contrary, the same was true for BNB, despite its price recording an increase in the charts.
Source: Santiment
AMBCrypto then analyzed ETH’s daily chart to see if it could sustain its bull run. We found that the Money Flow Index (MFI) moved sideways after an upswing, while the Chaikin Money Flow (CMF) moved south.
These suggested that investors may not see ETH’s price rise explosively in the near term.
Source: TradingView
Read Ethereums [ETH] Price prediction 2024-25
Similarly, Solana’s technical indicators also looked quite bearish. Both the MFI and CMF headed south, indicating that the token’s rally might not last long.
Source: TradingView
Given these data sets, it will be interesting to see how quickly a new altcoin season arrives.