The cryptocurrency market is well-known for its boom-and-bust cycles, frequently driven by big assets such as Bitcoin and Ethereum. Ethereum’s recent climb has ignited discussions for ‘Altseason,’ a time when altcoins outperform Bitcoin.
Current State of Altcoins Prices
The altcoin market is broad and diversified, with hundreds of coins that differ in use cases, technological underpinnings, and market performance. Following Ethereum’s surge, numerous cryptocurrencies saw substantial price changes. Some notable instances are:
Solana Price Analysis
Solana climbed above $185 on May 20, but bulls could not sustain it. The price dropped below $185 on May 21, signaling that bears are not giving up. The 20-day EMA and RSI show that the least resistance route is to the upward. If buyers conquer the block at $165, the SOL/USDT pair may retest the crucial overhead resistance of $205. However, this optimistic outlook may be dashed if the price falls below the moving averages.
Binance Price Analysis
BNB surpassed the resistance line on May 20 and achieved the critical overhead resistance of $635 on May 21. This level may operate as a barrier, but if bulls do not give in to bears, the chances of an upside breakthrough increase. Closing over $635 might pave the way for a run to $692. On the downside, the 20-day EMA ($590) and the support line provide significant support. A break below this level might extend the pair’s stay in the $495 to $635 range for a few more days.
XRP Price Analysis
Bulls sought to push XRP to the $0.57 overhead barrier on May 21, but bears sold off the rally. Bulls may seek to convert the level into support if the price recovers from moving averages, boosting the likelihood of a comeback above the $0.57 barrier. The XRP/USDT pair might then jump to $0.67. Conversely, if the price falls below the 20-day EMA, bulls may give up and drop below the support line to stop the collapse.
Is This the Start of Altseason?
Certain factors should be considered to confirm the start of Altseason.
Bitcoin Dominance
Bitcoin’s dominance has been decreasing with the emergence of altcoins, with Ethereum and stablecoins absorbing part of its market capitalization. With a nearly 20% market share, Ethereum accounts for one-fifth of the overall cryptocurrency market value.
Bitcoin dominance, or the share of overall cryptocurrency market value, has fallen somewhat in recent figures, likely suggesting the start of an altseason. The worldwide cryptocurrency market capitalization is presently $2.68 trillion, with Bitcoin accounting for $1.34 trillion, or 49.86% of the total. This is a -1.32% change in the previous 24 hours and a 132.33% change from a year ago.
Altcoins respond strongly to Bitcoin price fluctuations, making Bitcoin’s dominance ratio a helpful measure for gauging crypto market mood. Altcoins trade in either a downtrend or an upswing against Bitcoin, with steady values only occurring when Bitcoin’s dominance rises and its price falls.
Ethereum Price Surge and Its Impact
Ethereum Price Analysis
Ethereum has experienced tremendous growth. From April 2016 to the end of May 2024, its price went from about $11 to around $3,783, increasing 34,009%. Bulls drove the price over the resistance level of $3,730, signaling that bears had given up. If this barrier is cleared, the ETH/USDT pair might climb to $4,100 or $4,868.
This spike has reignited investor interest and drawn new attention to cryptocurrency. Historically, when Ethereum’s price rises, it frequently sparks a good attitude in the larger cryptocurrency market, encouraging investments in various altcoins. If the price falls below $3,730, bears will continue to sell at greater levels, and the pair may tumble below the 20-day EMA ($3,224).
Crypto analyst Michaël van de Poppe predicts that Ethereum’s outperformance of Bitcoin will trigger significant rallies in other altcoins. He also believes that Bitcoin’s dominance has peaked, suggesting that the flagship crypto might cool off while these altcoins enjoy upward trends. Van de Poppe previously predicted that the narrative would shift to Ethereum and expect altcoins to bounce in their Bitcoin pairs post-halving.
In the coming weeks, he predicts a significant rally for Ethereum, the second-largest crypto token by market cap. He believes Ethereum is at the end stage of the correction and expects good times for other altcoins. Van de Poppe also sees consolidation on Altcoin market cap charts before the next big push upwards. The good times are expected in a few weeks.
Altcoins to Buy
Identifying promising altcoins to buy during a potential Altseason requires careful analysis and consideration of various factors, including technology, team, use cases, market trends, and community support. Here are some altcoins that are currently generating interest:
1. Ethereum (ETH)
- Market cap: $454.4 billion
- Year-over-year return: 109%
Ethereum, a blockchain platform, is popular among programmers due to its potential uses, such as smart contracts that run automatically when certain conditions are satisfied. Ethereum has also seen remarkable development. From April 2016 to the end of May 2024, its price increased by 34,009%, from roughly $11 to around $3,783.
2. Tether (USDT)
- Market capitalization: $111.3 billion
- Year-over-year return: 0%
Tether (USDT) is a stablecoin, unlike other cryptocurrency types. It is backed by fiat currencies such as US dollars and the Euro and has a theoretical value equivalent to one of those denominations. In principle, Tether’s value should be more consistent than that of other cryptocurrencies, and it is preferred by investors concerned about other coins’ excessive volatility.
3. Binance Coin(BNB)
- Market capitalization: $90.3 billion
- Year-over-year return: 99%
Binance Coin (BNB) is a cryptocurrency that allows you to trade and pay fees on Binance, one of the world’s major cryptocurrency exchanges. Since its inception in 2017, Binance Coin has evolved beyond just conducting deals on Binance’s exchange platform. It may now trade, handle payments, and even organize trip plans, also be traded for other types of cryptocurrency, such as Ethereum and Bitcoin.
BNB’s price in 2017 was under $0.10. By late May 2024, its price had increased to almost $612, representing a 612,136% increase.
4. Solana (SOL)
- Market capitalization: $80.8 billion.
- Year-over- year return: 809%.
Solana was created to support decentralized finance (DeFi), decentralized applications (DApps), and smart contracts. It employs a unique hybrid proof-of-stake and proof-of-history approach to handle transactions rapidly and securely. Solana’s native cryptocurrency, SOL, drives the platform. SOL’s price upon introduction in 2020 was $0.77. As of May 21, 2024, it was around $181.83, representing a 23,250% increase.
5. XRP (XRP)
- Market capitalization: $30.0 billion.
- Year-over-year return: 18%
XRP is a digital ledger technology and payment processing firm. It may be used on that network to allow swaps of many currencies, including fiat currencies and other major cryptocurrencies. At the start of 2017, the price of XRP was $0.006. Its price hit $0.54 on May 21, 2024, representing an increase of 8,949%.
The Future of Altcoins
Altcoins have emerged as a popular alternative to Bitcoin, providing investors and traders new ways to diversify their portfolios and optimize earnings. However, the future of altcoins remains questionable owing to competition from established cryptocurrencies such as Bitcoin and Ethereum, which have already acquired considerable usage.
Altcoins are also highly speculative and lack the security and stability of well-established cryptocurrencies, making them riskier investments. Despite these obstacles, cryptocurrencies may continue to expand and thrive in the next years owing to their distinct characteristics and capabilities, making them appealing to investors and traders looking for new ways to diversify their portfolios.
Conclusion
The cryptocurrency market is going through a boom-and-bust cycle, with Bitcoin and Ethereum being key assets. Ethereum’s recent spike has generated talk of a new “Altseason,” in which altcoins outperform Bitcoin and see huge price increases. The altcoin market is varied, with hundreds of currencies that differ in use cases, technological foundations, and market performance. Bitcoin’s dominance has declined, indicating an altseason. Altcoins react significantly to Bitcoin price swings, trading in either a downtrend or uptrend against Bitcoin.
This has reignited investor interest in cryptocurrencies, with Ethereum’s price often drawing investment. However, altcoins’ future is questionable owing to competition from established cryptocurrencies and their speculative character. Despite these obstacles, cryptocurrencies may continue expanding and prosper in the next years due to their unique properties.
