The total market cap for the altcoin industry has consolidated around $566 billion after the January rally saw a $100 billion increase over last year’s ATL. The Ethereum (ETH) market has enjoyed more than 38 percent dominance in the altcoin industry with a valuation of about $218 billion as of Friday.
Bitcoin dominance trends
With Bitcoin dominance showing a lot of indecision at the next step around 48 percent, crypto traders have no choice but to wait for a clear signal.
Moreover, Bitcoin’s dominance is an important factor when considering the next move in the altcoin market. Typically in the crypto bear market, money tends to rotate from Bitcoin to the altcoin industry due to low capital inflows from new investors compared to bull rallies.
When considering these altcoins, it is worth noting that Ethereum (ETH) is large-cap, Polygon (MATIC) and Chainlink (LINK) are considered medium-cap, while Pepe (PEPE) is small-cap. Therefore, it is prudent to keep the concept of diminishing returns in mind when analyzing each of the altcoins.
Ethereum (ETH)
On Friday, Ethereum price hovered around pre-Shanghai levels despite the overall crypto bearish outlook. After closing in a Doji candlestick pattern last week, chances are the king of smart contracts and the DeFi ecosystem will end around the same level this week. However, if the Bitcoin price dips below USD 26,000 in the coming days, the Ethereum bears will be rejuvenated to push around USD 1700.
Chain link (LINK)
The Chainlink (LINK) held dangerously at a support level near USD 6.2 on Friday. Nevertheless, the bears have the upper hand in the short term, despite being between $9.4 and $5.4 since June last year.
Polygon (MATIC)
As for this Ethereum scaling network, Polygon (MATIC), the price was up about 3 percent on Friday after consolidating around $0.86 over the week. Nevertheless, MATIC price will need to break above the 50 MA and logarithmic downtrend to confirm a bullish outlook.
Pepe (PEPE)
The frog-themed meme coin, Pepe, has been in correction mode for the past three weeks after rallying to ATH earlier this month after listing on Binance. The meme coin has found temporary support around $0.00000145 for the past two days.