The altcoin market thrives over hope. In a recent Crypto capsule released by Crypto Rover a sheer technical analysis review that a bullish drive is around the corner for the altcoin sector.
Analysts found a widening split between the current prices and their relative strength indices. The more the split, the higher the chance of the market gaining momentum.
Crypto Rover landed the analysis on Saturday. Their X handle broke the news. While the path for altcoins is optimistic, stablecoins like Bitcoin can experience a further dip.
The analysis cannot be undone easily as the altcoin index shows a transaction of 4.2% (upwards) within 24 hours. However, Bitcoin is showing a downward direction of 1.3%.
Effect on trade
Short-term traders are certainly excited over this fact. According to them, many coins can make it big if the bullish trend becomes an actual reality. One of the coins with huge potential is Ethereum. The traction gained by ETH in the last 24 hours is more than 15%. That net traded volume of the coin is now $23 billion.
After Bitcoin, ETH is the most popular coin in the crypto market. What’s getting investors hooked is not only a percentile growth in the price proportion of coins but a surge in volume as well.
Possibility of a turnaround
The relative strength index (68) means that the market of altcoins is going to evolve. The trading volume can explode within a few weeks to a few months. This fact is supported by the MACD index as well. The relative strength as well as moving average convergence divergence indices equally suggest that the training volume is going to grow.
The Market is Finally Responding
The converging signs from both indices could mean that the market is finally showing greater interest in altcoins. It could be an outcome of a major disappointment in stablecoins.
A lot of investors were thinking that Bitcoin would grow big in a time frame of 1 year. But, such hopes have already been put to rest now. It means that investors are desperate to turn their attention to other coins at the moment.
If it has to be some other crypto, why not altcoins if they show a potential to grow big in the short to medium term? Traders should frequently check the general sentiment. Once the genuine altcoin graphs start growing big, it would be the right crossover for investments to flow in great numbers!
