Bulls pushed back, temporarily halting the mounting selling pressure impacting Cardano, Solana and Ethereum. The altcoin market has stabilized over the past day, but new data points to potential short-term problems.
At the time of writing, Cardano (ADA) is trading at $0.23 with sideways moves over the past day. Solana and Ethereum recorded similar price action during this period, but these assets have slowly faded into support on the weekly chart.
Cardano, Solana and Altcoins could be affected
Facts shared by the co-founders of crypto analytics firm Glassnode via social media platform The benchmark has been slowly moving lower, but found some support yesterday and could be poised to regain previously lost ground.
The metric measures the percentage of the total crypto market capitalization made up of Bitcoin. Furthermore, when BTC.D reaches a certain point, it often leads to bull or bear markets for mini altcoins.
The metric could point to further losses for Cardano, Solana and other tokens in the current scenario. Glassnode co-founders stated:
It’s not just ETH feeling the heat; other major altcoins such as Solana, Cardano, Dogecoin, Tron, Polkadot and Polygon are also deep in the red. As Bitcoin’s dominance has surged past 51% and inched closer to its 2021 peak, altcoins are indeed feeling the pressure. To see the revival of the highly anticipated Altcoins season, a significant recovery will be essential.
As seen in the chart below, the Bitcoin Altcoin Cycle chart is moving closer to a ‘Bitcoin Season’ as indicated by the blue line. As Bitcoin Dominance moves up towards the 50% area, altcoins are likely to continue experiencing losses in the near future.
However, the Bitcoin Altcoin Cycle chart shows that BTC.D is in a critical zone. The metric has returned to Altcoin Season Territory in the past.
In particular, Cardano, Solana, XRP, Ethereum and other altcoins saw a substantial rally in July. If Bitcoin cannot produce a catalyst, something that can push it above the 50% dominant zone, then Altcoins can make some gains.
Ethereum could potentially be the key to propelling altcoins into a hot season. About the price action of this cryptocurrency, the co-founder of Glassnode said declared:
From the weekly resistance at $1,744, ETH has tumbled, down 8% in just two weeks, landing at $1,574. Although the price appears to be consolidating, the upward slope of the RSI suggests that buyers are competing for higher levels. But if sellers resisted this advance, they would (…).
Cover image from Unsplash, chart from Tradingview