- Altcoins are showing signs of recovery with the potential for significant gains.
- Analysts highlight strong market movements and positive technical patterns signaling an uptrend.
The altcoin market is showing signs of reversing its recent bearish trend, falling from a high of over $1.26 trillion in March to a low of $960 billion by June 24.
With the arrival of July, a significant recovery was observed. Over the past few days, the altcoin market has seen an increase of almost 3% and once again crossed the $1 trillion mark, which is currently valued at $1.025 trillion.
This revival of the altcoin market is closely related to the parallel revival of Bitcoin [BTC]. BTC saw an increase of around 2.7% in the past week, with prices oscillating between $62,000 and $63,000.
Analyst on Crypto Banter’s The Sniper Trading Show highlighted that Bitcoin trading in this range indicates bullish pressure over the past 24 hours exemplified by the formation of a “pin bar candle”.
Such a pattern often indicates a potential bullish reversal. During The Sniper Trading Show, the analyst highlighted how the bulls drove the price higher on the weekly and monthly close. This signals strong upward momentum.
Altcoins potential to rise 40% this week.
The analyst noted that altcoins, including prominent names like Solana [SOL], show significant activity. Analyzing the Ethereum chart, Bitcoin pointed to a possible trend reversal and Ethereum value recovery.
He noted that many altcoins show potential on higher time frames. With robust RSI levels indicating a bullish divergence, these coins could soon outperform both Ethereum and Bitcoin.
Additionally, the overall sentiment in the cryptocurrency market seems to be shifting positively. The analyst highlighted USDT’s declining dominance as a signal that a market bottom could be forming, paving the way for substantial gains.
This sentiment is reinforced by strategic moves in coins like Cardano [ADA]RUNE, Injective [INJ]Chain [LINK]Phantom [FTM]Solana and Polkadot [DOT]all of which form bullish patterns that could lead to significant price increases.
In particular, the analyst predicts a robust performance for altcoins in the coming week, predicting gains of 20-40%.
While bullish on altcoins, he maintains a more reserved outlook for bitcoin, suggesting a gradual increase in its price without expecting an immediate rise to $70,000.
Bullish signs observed: Cardano as a case study
To assess potential bullish trends in altcoins, Cardano [ADA] serves as an illustrative case study. We’ll look at Cardano’s main metric for any significant indication of bullish sentiment. Perhaps this can give more credence to the analyst’s prediction of a 40% rise in altcoins.
First, the asset’s market performance is worth noting – ADA has recently shown robust performance; it rose 2.5% over the past day, continuing a weekly uptrend that saw a total increase of more than 5%. ADA was trading at $0.4064 at press time.
An asset’s open interest, a measure of the total number of outstanding derivative contracts such as futures and options that have not been settled, reflects an upward trend in its price.
According to CoinglassADA’s open interest rose 3% in a single day, now worth $223.28 million.
This increase is in line with a roughly 1% increase in open interest volume, which now stands at $257.59 million, indicating increasing commitment from traders.
Source: Coinglass
Additionally, whale activity in the ADA has also seen a significant uptick. Data from IntoTheBlock reveals a sharp increase in large transactions (over $100,000), climbing from less than 4,000 last month to over 5,000 today.
This increase in high-value transactions is an indicator of increasing interest from large investors, which may have a positive effect on the price of ADA.
Source: IntoTheBlock
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These robust metrics in ADA trading activity suggest that both Cardano and the broader altcoin market may be poised for an upward surge, as expected by Crypto Banter analyst.
This bullish scenario was further supported by an earlier AMBCrypto report suggesting that the recent negative sentiment around ADA could be harbinger of a significant increase in prices.