Is it time for altcoins? A week ago, we learned that Ripple (XRP) could not be considered a security. Since then, XRP scores a first victory against the SECand this is excellent news for the cryptocurrency sector. It is also encouraging for the eventual acceptance by the SEC of Bitcoin ETFs filed by funds such as Ark Invest or Blackrock. For its part, the Bitcoin price is still stuck in a range between the upper bound at $31,500 and the lower bound at $29,800. Despite the good news on the XRP front, crypto-currencies are not taking advantage of the situation to start climbing again. Is this a sign of feverishness on the part of altcoins, which should have taken advantage of this news to start climbing again? Or are altcoins on the verge of a comeback? Let’s take a look at the information provided by the charts.
Altcoin capitalization resumes level at $570 billion
Altcoin capitalization evolves within a range for more than a year between the upper limit at 660 billion dollarsand the low point at 435 billion dollars. We may be disappointed by the reaction of altcoins after the XRP’s first victory over the SECbut altcoin capitalization is back in the black. Indeed, the price climbed back to the level at 570 billion dollars as support :
The price has recently bounced at the level of the bullish institutional bias (EMA 9/EMA 18). If buyers continue to defend this level, the price could quickly reach the resistance at $660 billion. Whatever happens, we’ll have to break this resistance zone for altcoins to start rising again. For the moment, this level is holding, and has been for over a year. On the other hand, if the price slips below support at $570 billionthe share price could fall towards the next support at $500 billion.
The RSI tries to break the bearish trendline initiated at the start of 2023. A break of this resistance level could lead to further price declines. bullish volatility for altcoins. We need to keep posting rising lows and highs for buyers to keep a grip on momentum.
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Bitcoin’s dominance shows signs of feverishness
The Bitcoin dominates altcoins since the end of 2022. As a result, the king of cryptocurrencies attracts capitaland investors are moving away from altcoins for the time being. The price of Bitcoin’s dominance is back at the 9 and 18 moving averages. For the time being, all the returns to these moving averages have led to a rebound on the price :
In the event of reboundthe price could return to the resistance at 53% dominance. The price could then slow down at this level. On the other hand, if the price fails to close above the last peak at 52.2% dominancethe share price could mark a double top. This would give altcoins a chance to stand out from the crowd. It will take a return to a dynamic with descending lows and highs to see that the capital flows into altcoins.
RSI continues to fall below the bearish trendline. Here again, the RSI would need to show descending lows and highs for the regain control of momentum.
$2,000 resistance rejects Ethereum price
Ether is in a bullish momentum since the beginning of the year. However, the resistance to $2,000 continues to stand in the way:
Price back to institutional bullish bias. In the event of a rebound, the share price will once again have to contend with the resistance at $2,000. If this resistance were to be broken, the price could reach the resistance at $2400. However, in the event of rejection at the $2,000 resistance level, the price could join the support at $1,750. This is also the current location of the bullish trendline. This level must be defended by buyers to avoid breaking the momentum established since the start of the year.
RSI continues to trend below the bearish trendline. When this trendline gives way, the share price could experience a downturn. bullish volatility. As long as the RSI is below the bearish trendline, momentum is positive. fragile.
Ether rebounds against Bitcoin?
Since the end of 2022, Ethereum is fragile against Bitcoin. However, the ETH/BTC pair is in a strong range for over two years. In fact, the price has the potential to rebound at the bottom of the range. The price is in the process of rebounding, but it could be release at the 9 and 18 moving averages :
Buyers need to defend the bottom of the range to avoid another wave of declines on Ethereum and altcoins. In the event of a rebound, the price will have to break out of the resistance around 0.066 BTC. This is also where the bearish trendline which has already pushed the share price back several times this year. Once this trendline is broken, the share price could experience a downturn. bullish volatility. As long as the price is below this trendline, it will remain fragile. The RSI must evolve above the bearish trendline for buyers to take advantage of the momentum. Also, a close above 61 would make it possible to bullish divergence.
XRP takes advantage of its victory to explode upwards
The XRP share price shows strong since the announcement of the first victory over the SEC. Since the support at $0.32the price is up more than 150 %. At present, the course is once again attempting to tackle the resistance at $0.88 :
In the event of a break of this resistancethe share price could reach the next resistance at $1. On the other hand, if the price rejectthe price could return to the 0.65 dollar support. Since the move was so violent, the institutional bias is moving well below the price. In the days and weeks to come, institutional 9 and 18 moving averages could serve as dynamic support.
RSI keeps the bullish trendlineBuyers have the upper hand on momentum. However, we will have to be vigilant, as the RSI is already in overbought zone.
XRP seems to have awakened cryptocurrenciesand it may not be over yet. Indeed, altcoin capitalization has managed to take back the $570 billion level as support. However, the price is still in a range, and resistance at $660 billion will have to be broken before altcoins regain some of their color. With this move in altcoins, Bitcoin’s dominance has fallen, but it has the potential to bounce back at the 9 and 18 moving averages. Ethereum, meanwhile, is being rejected at the $2,000 resistance level. As long as the price remains stuck below this level, sellers have the opportunity to push towards the support level at $1,750. Against Bitcoin, Ether is trying to bounce back. It will be necessary to break out of the bearish trendline to regain some color on this pair. If Ethereum starts to outperform Bitcoin again, altcoins could benefit.
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