Markets
Top Altcoins could see a 30% drop in the next 10 days, here’s why
The crypto market has experienced a rollercoaster week, with significant developments affecting multiple coins. Red Coin (RWE) has reached unprecedented highs, while altcoins have shown signs of weakening after a bullish year. The rise of meme coin hype and the emergence of the FOMC have contributed to this volatility, leaving traders and investors in a state of emotional turmoil.
Let’s analyze the red crypto market.
Impact of meme coins
In a recent podcast, Crypto Banter pointed out how meme coins negatively impact the crypto market. They delayed the expected rise of altcoins by attracting investment from genuine projects. This focus on memes has raised concerns about a possible scenario in which the elimination of meme coins becomes crucial to the recovery of altcoins. The analyst argues that the removal of meme coins is essential to allow projects with real-world applications to succeed in the market.
When to buy: Bitcoin or Altcoin?
The analyst recommended focusing on long-term portfolios and good entry points, highlighting the Bitcoin Rainbow Chart as a tool for identifying investment opportunities when the market is oversold. The chart categorizes market conditions, advising accumulation in light green zones, buying in blue zones, and recognizing immediate selling opportunities in dark blue zones.
If Bitcoin collapses, altcoins could capitulate due to its dominance. The analyst is optimistic about Bitcoin in the long term despite short-term volatility. Bitcoin’s dominance means that altcoins may suffer in the short term, but will recover quickly when the market recovers.
Analyst picks Altcoin trends
Injection Protocol (INJ)
Currently trading around $20, INJ is facing significant downward pressure, with potential further decline indicated. Investors are advised to wait for clearer signs of market stability before considering entry points.
Fantom (FTM)
FTM has stabilized near its support levels, suggesting a potential further drop to around $0.55 to $0.50. This presents a cautious buying opportunity for those looking to accumulate at lower prices once market conditions stabilize.
Immutable X (IMX)
IMX remains stable at lower levels amid the broader market downturn. Accumulation strategies could be considered as IMX shows resilience, albeit with continued market volatility affecting sentiment.
Chain link (LINK)
LINK is currently losing support around $12, with potential buy zones identified at $12 and $10. Investors should closely monitor any signs of reversal or confirmation before entering positions.
Polkadot (DOT)
DOT is approaching critical support levels near $4.5, indicating a cautious outlook. Investors are advised to be patient and wait for stronger market signals before considering new positions.
With the current market uncertainty, many are wondering about the future of cryptocurrencies in 2024 and whether investing in altcoins is wise for the next bull run.