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Top Altcoins Could See a 30% Drop in the Next 10 Days, Here’s Why
The cryptocurrency market has had a rollercoaster week, with significant developments affecting various coins. Red Coin (RWE) reached unprecedented highs, while altcoins showed signs of weakening after a bullish year. The surge in 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 cryptocurrency market.
Impact of meme coins
In a recent podcasts, Crypto Banter highlighted how meme coins have a negative impact on the cryptocurrency market. They have delayed the expected rise of altcoins by luring investments away from genuine projects. This focus on memes has raised concerns about a possible scenario where 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 classifies market conditions, recommending accumulation in the light green areas, buying in the blue areas and recognizing selling opportunities in the dark blue areas.
If Bitcoin collapses, altcoins could capitulate due to its dominance. The analyst is optimistic about Bitcoin in the long term despite the short-term volatility. Bitcoin’s dominance means that altcoins may suffer in the short term but recover quickly when the market rebounds.
Analysts choose trending Altcoins
Injection protocol (INJ)
Currently traded 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 it flattened out near support levels, suggesting a potential further decline between $0.55 and $0.50. This presents a prudent 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, even as continued market volatility impacts sentiment.
Shirt (LINK)
CONNECTION it is currently losing support around $12, with potential buy zones identified at $12 and $10. Investors should carefully monitor any reversal or confirmation signals before opening positions.
Polka dot (DOT)
POINT is approaching critical support levels near $4.5, indicating a cautious outlook. Investors are advised to exercise patience and wait for stronger market signals before considering new positions.
With the current market uncertainty, many are wondering what the future of cryptocurrencies will be in 2024 and whether investing in altcoins is wise for the upcoming bull run.
Read also: Cryptocurrency Market Collapse: How Much Can Bitcoin and Altcoins Fall?