Altcoins
Altcoins like XRP and ADA are dead; analyst says focus should be on these coins
On Dylan’s Crypto Banter trading show, the analyst said When trading altcoins, it is essential to monitor market dominance. Currently, dominance is declining, which is positive for altcoins. This downtrend is characterized by lower highs, and a further decline to around 54% would be ideal.
The ideal scenario involves a further decline in dominance in the next 24 hours after the Consumer Price Index (CPI) announcement, followed by a strong recovery in dominance. This could trigger significant bullish moves in altcoins, breaking trends and setting new highs. However, he added, “Don’t get trapped by dead coins like XRP and ADA.”
He talked about Solana (SOL) and said that the support level for Solana is between $137 and $139. If there is weakness, the trend should continue; a loss from this level would indicate a break below the 200-day moving average, the 382 Fibonacci level, and key horizontal supports, which would not be favorable.
Regarding Ethereum (ETH), the analyst observed that Bitcoin recently rejected the 200-day MA. He sees ETH approaching the same level on a 3-day chart, which could trigger significant moves in altcoins. The analyst is targeting $3,350 and $3,500 for ETH if it can break out and hold above the 200-day MA.
He is looking for a bullish breakout, a retest, and if this scenario plays out, it could trigger a significant move in altcoins. However, a rejection could cause more pain for altcoins. If Ethereum gets very aggressive, he expects PEPE to follow suit. The plan is to wait for ETH to break above the 200-day MA, which could trigger a move higher in PEPE.
For Bonk, he noted that it is in a major resistance zone similar to ETH. He will be watching for a pullback towards the 382 Fibonacci level if there is weakness, especially with CPI data on the horizon. Speaking of Fantom (FTM), he mentioned a recent pump and retracement, drawing attention to major resistance. He is watching for a potential bullish move if market sentiment improves. Key entry points are around $0.45 and $0.42.
Stacks (STX) has broken the trends and shown signs of a bullish pullback. The suggested entry is around $1.437, with stops covering further weakness to the 618 Fibonacci level.