The broader cryptocurrency market, led by Bitcoin (BTC), has recently consolidated after being buoyed by increased institutional interest. As Bitcoin has established itself well above the $30,000 mark, attention has shifted to altcoins in particular and their potential to attract capital inflows and challenge Bitcoin’s dominance.
In this regard, several cryptocurrency analysts have pointed out that technical indicators are pointing to an impending altcoin breakthrough. For example, on July 9, pseudonymous crypto analyst Mustache, also known as el_crypto_prof, tweeted that altcoins currently have significant “broadcast potential.” The analyst noted that the current market condition is similar to the previous cycle.
According to the analysis, the current altcoin market cap has retested the values that acted as anchors during the 2021 bull market.
“Altcoins have absolute broadcast potential,” if you ask me. The similarities to last cycle are impressive, aren’t they?” said the analyst.
Total cryptocurrency market cap chart. Source: TradingView
Similarly, another analyst using the pseudonym CryptoFaibik suggested that an altcoin rally is imminent based on the historical dominance of Bitcoin crypto market cap. In this case, the analysis suggests that the dominance is likely to decrease, suggesting that investors are pouring money into altcoins.
Bitcoin Market Cap Dominance chart. Source: TradingView
Dogecoin (DOGE)
The meme coin has maintained a stable position, showing resilience in the face of flat valuation, in line with broader market trends. However, there has been a notable event for Dogecoin (DOGE) over the past few weeks as it has staged a brief surge and surpassed $0.07 for the first time in four weeks. This surge followed the largest short sale of digital assets in 2023.
Despite this positive development, discussions and general interest in DOGE remained relatively low. Santiment, a crypto and blockchain analytics platform, reported this on July 4th.
With past instances of Dogecoin attracting increased interest, leading to significant rallies in 2021, investors are hoping to use factors such as improved network development to propel DOGE to fresh highs in the event of altcoin season.
Additionally, a recent report by Finbold highlighted that PricePredictions, a crypto tracking and analytics platform, used advanced machine learning algorithms to predict a price of $0.067428 for Dogecoin by July 31, 2023 . At press time, DOGE was trading at $0.065, posting weekly losses of over 2%.
DOGE seven-day price chart. Source: Finbold
Litecoin (LTC)
Over the past few weeks, Litecoin (LTC) has seen a series of price swings that have resulted in a mix of ups and downs. Notably, the asset has attracted attention in the run-up to the halving, with LTC eyeing the crucial $100 resistance zone.
As the event draws closer, Litecoin’s on-chain metrics have changed significantly, suggesting the possibility of an impending rally. One notable development is the steady increase in the number of millionaire addresses for Litecoin, as reported by on-chain crypto analytics platform Santiment in early July. This adds to the growing anticipation for the halving event.
Litecoin halving in 2023 is set to reduce the block reward from 12.5 LTC to 6.25 LTC. Such scarcity mechanisms often generate heightened investor interest and trigger significant price movements.
At the same time, LTC shows increasing acceptance in various use cases, especially in payment transactions. In particular, Litecoin overtook Bitcoin in June to become the most used digital payment method on BitPay.
Number of BitPay payments by crypto. Source: BitPay
In addition, Litecoin has also made important ventures in the field of smart contracts through ordinals inscriptions in the protocol, which represents a significant change in its functionality.
At press time, Litecoin was trading at $96.74, down around 1% daily, while LTC is down 12% on the weekly chart.
LTC 7-day price chart. Source: Finbold
Polygon (MATIC)
Polygon (MATIC) suffered a fall in value after the Securities Exchange Commission (SEC) classified the token as a security. Since then, the token has been trying to recover from the impact of this news.
Despite the setback caused by the SEC rating, MATIC is relying on its strong fundamentals to regain its footing. For example, in early July, Polygon’s price broke through the key $0.70 resistance level for the first time since the lawsuit.
While MATIC’s price has yet to fully recover, the Polygon network saw a surge in user engagement over the week. For example, the number of daily active MATIC addresses (7 days) gradually increased from 1.3 million users on June 27 to 1.34 million active users on July 6.
This increase in demand from Polygon users has had a positive impact on the MATIC price, maintaining a bullish outlook for most of the week. At press time, MATIC was trading at $0.70, posting daily and weekly gains of 2% and 4%, respectively.
MATIC 7-day price chart. Source: Finbold
In general, the possibility of an altcoin rally will likely depend on other market conditions, such as bitcoin’s price action.
Disclaimer: The content of this website should not be construed as investment advice. Investing is speculative. When you invest, your capital is at risk.
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