Is a rebound possible for altcoins? At the FED meeting, J. Powell and his colleagues decided to raise rates by 0.25%.. A decision that doesn’t seem to surprise market operators, as the US market and cryptocurrencies took advantage of it to rebound. A rebound that remains timid, as the Bitcoin price remains below the psychological figure of $30,000. Ethereum, meanwhile, is trading below $2,000. The hype surrounding ETF Bitcoin is already a long way off, and cryptocurrencies seem to be running out of energy. Indeed, news of XRP’s first victory against the SEC failed to revive the rally, and sellers took advantage. For all that, is a rebound possible in altcoins? ? Is a new wave of decline imminent? Let’s take a look at the clues left by the charts.
Towards a rebound in altcoin capitalization?
Altcoin capitalization has recently rebounded at the support at 500 billion dollarsand returned to the 570 billion dollars. The price is currently trading at support at 570 billion dollars and institutional bias (EMA 9/EMA 18). Buyers should defend this level so that the share price can bounce back:
A rebound could bring the price back to the resistance at $660 billion. Whatever happens, this resistance gives in to get out of this range between resistance at $660 billion, and support at $435 billion. Indeed, an upward break of this range would open up the possibility of a return to the level of the resistance at $950 billion. This level hasn’t been touched since May 2022. On the other hand, if support gives way, the price could fall once again towards the 500 billion dollar support.
The RSI is bounce backwe would need to set up a dynamic with ascending troughs and peaks.
Bitcoin’s dominance stagnates below 50%.
For the time being, the dynamics of Bitcoin’s dominance remain bullish. In fact, the share price upward momentum (ascending troughs and peaks) since the end of 2022. The Bitcoin attracts capitaland investors are not interested in altcoins. Currently, the price is trading at the bullish institutional biasa rebound could occur:
If a rebound is in place, the share price could then continue its upward momentum and rub shoulders with the resistance at 53%.. On the other hand, if the share price begins to change momentum by marking an « M top », the altcoins could benefit. As long as the momentum is bullish on Bitcoin’s dominance, altcoins will continue to be fragile. For its part, the RSI seems to indicate fragility by having clearly broken the bullish trendline established at the end of 2022. The share price now needs to confirm this by changing momentum.
Ethereum must break through resistance at $2,000
As for the prince of cryptocurrencies, the situation remains unchanged. The price is fluctuating between the resistance at $2,000 and the support at $1,750. Buyers are aiming to break the resistance at $2,000. For this, a close above the last high at 2,027 dollars would be interesting:
If the price manages to regain the 2,000 dollars as supportthe next target for buyers is the resistance at $2400. Beware, if the buyers fail, the price could return to the level of the support at $1,750. A level of support that will have to be defend to avoid breaking the bullish trendline initiated at the end of 2022.
RSI continues to move below the bearish trendline on the daily chart. However, a close above 65 would allow the momentum indicator to break the bearish trendlineand regain momentum with rising lows and highs. Buyers need to regain momentum to finally break the resistance at $2,000.
Ethereum continues to be fragile against Bitcoin
Ethereum is nowhere near as solid than during the last bullrun. In fact, at the time, the price ofETH was significantly outperforming the king of cryptocurrencies. Since late 2022, capital has been flowing into Bitcoin, and the pair ETH/BTC falls. Also, all returns to the bearish trendline ended in rejection so far:
The price is at the institutional bearish biasand a new rejection could occur in the days or weeks ahead. However, a break in the bearish trendline and the resistance to 0.066 BTC would allow ETH to regain strength against BTC. Capital could then flow back to the prince of cryptocurrencies.
The RSI once again attempts to break the bearish trendline. Momentum is solid, as a bullish divergence seems to be taking shape. Indeed, the price has marked a new low, but not on the momentum indicator. A close above 61 would validate this bullish divergenceand this would also break the bearish trendline.
Can Dogecoin (DOGE) make another mark thanks to Elon Musk?
Dogecoin is having an interesting week, posting a 15% rise. Most of this rise seems to stem from speculation about the inevitable Elon Musk. Once again, Elon Musk sows doubt. Indeed, some operators imagine that the » Ð « recently added to his profile reference to Dogecoinand that social network « X » could soon accept payments with this cryptocurrency. The result is not as impressive as during the bull market in 2021, but the price has regained the level of support at $0.07 :
The price is approaching the resistance at $0.088. If the buyers manage to break through this resistance, the price could reach the next resistance at $0.105. On the other hand, if the price is rejected, it could return to the level of the bullish institutional biasand the support at $0.07. The RSI recently broke the bearish trendlineBuyers are once again in control of momentum.
Altcoins continue to be fragile, but a rebound is underway in the altcoin capitalization. The price is at support level at $570 billion. If the rebound is confirmed, the price could return to the resistance level at $660 billion. With Bitcoin’s dominance stagnating below 50%, it would have to fall further to witness a rotation of capital towards altcoins. Ethereum, meanwhile, is hovering below $1,900. Buyers’ objective remains the same: to recapture the $2,000 zone as support. If this scenario unfolds, the price could return to the next resistance level at $2,400. For the time being, ETH continues to be fragile against BTC. As long as the ETH/BTC pair doesn’t change its dynamics, Ethereum and the altcoins will remain fragile.
Dogecoin is the altcoin of the week. Buoyed by hopes that Dogecoin could be used as a means of payment on « X », the price climbed 15% in seven days. The price is closing in on resistance at $0.088, and if it gives way, the price could return to the next resistance level at $0.105. Will altcoins follow Dogecoin?
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