Ethereum
Bitcoin, Ethereum, Ripple Weekly Wrap: June 7, 2024
The crypto market has not been the same for all assets. Bitcoin (BTC) has had a good run, but major coins like Ethereum (ETH) and Ripple (XRP) are still suffering. The chances of altcoins gaining momentum and rallying depend on how well Bitcoin performs.
Identifying altcoin season is important because it helps estimate when and how much growth alts might experience.
The Potential of an Altcoin Season
Juan Pellicer, principal researcher at IntoTheBlock, says several signals dictate the arrival of altcoin season.
“In previous market cycles, altcoin seasons often begin with a sustained downtrend. BTC dominance, indicating a shift in market sentiment towards altcoins. While this trend is a useful leading signal, identifying potential winners during the upcoming altcoin season requires analyzing advanced on-chain metrics,” said Pellicer.
“For example, the average length of time an asset is held by its holders can indicate its resilience. Assets held longer by investors may experience more sustained price increases during bull markets. Additionally, on-chain data related to whale behavior is invaluable,” he added.
Secondly, the market growth also relies on the overall demand for crypto assets. The recent increase is a sign confirming this demand. However, stability is the next concern. Along the same lines, Julio Moreno, head of research at Cryptoquant, told BeInCrypto:
“The stabilization then the slight increase in demand for Bitcoin from permanent holders and large holders (whales). This indicates higher demand growth this month compared to April. Permanent holders have purchased 74,000 Bitcoins in the last 30 days, while whale demand is currently growing at 5% monthly. See second and third tables. We still need higher demand growth from these investor cohorts for price increases to be sustainable.
Application for permanent Bitcoin holders. Source: CryptoQuant
Thus, these clues are essential when looking for a guide on the altcoin season.
Price prediction for BTC, ETH, XRP: growth likely, although slow
Bitcoin (BTC)
The price of Bitcoin exceeded market expectations as it recorded a growth of 5% during the week. This rise took the price to $71,160, close to the critical resistance at $71,800. Broader market signals are still bullish, with BTC moving in a flag pattern, indicating a 45% rally ahead.
However, the most practical outlook is an increase to the current all-time high of $73,650. Violating it would establish a new ATH for BTC.
Learn more: Bitcoin Halving History: Everything You Need to Know
On the other hand, the $71,800 barrier has been held for almost three weeks now. A failed crossing of this level could slow the recovery, letting the price of Bitcoin fall back to $68,500.
Ethereum (ETH)
Although Ethereum price is not bullish at the moment, it maintains the rally seen last month. The altcoin broke out of the descending wedge and reached $3,980 at one point, but quickly declined.
ETH is struggling to close above the 61.8% Fibonacci retracement of $3,829. This level is also known as the bullish support floor, and recovering above this level would raise $4,000.
Learn more: Who is Vitalik Buterin? An in-depth look at the co-founder of Ethereum
But if Ethereum price fails to secure this level as support, a decline cannot be ruled out. ETH could thus fall on the daily chart to test support at $3,695 or the 50% Fib line at $3,582.
Ripple (XRP)
XRP price saw a disappointing development, trading at $0.52. The altcoin forms an ascending triangle and awaits a breakout. This bullish chart formation features a horizontal resistance line and an ascending support line. This indicates increasing buying pressure, suggesting a potential breakout above the resistance level.
However, this theoretical rise has yet to be seen as, at present, the altcoin has barely closed above the 23.6% Fibonacci retracement. This is a good sign since this Fibonacci level is known as the bear market support floor. Securing it would prevent a further drop in the price of XRP.
Learn more: Everything you need to know about Ripple vs SEC
But losing it could send the altcoin to $0.50 or lower to test critical support at $0.47, completely invalidating the bullish thesis.
Disclaimer
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