Will Bitcoin’s move above $41K spark an altcoin rally?
- The prices of Ethereum and XRP rallied over the last seven days.
- DOGE, SHIB, and PEPE showed bullishness as well.
Bitcoin [BTC] managed to go above the $40,000 mark after quite a long time. This milestone in the price of the king coin helped the overall altcoin market capitalization cross a critical level.
Moreover, on the 3rd of December, X (formerly Twitter) account Rekt Capital highlighted that the altcoin market cap, excluding the top 10 cryptos, touched a critical level.
To be precise, the market cap turned its resistance level into a new support.
Altcoin Market Cap has been successfully retesting this old resistance as new support for three weeks in a row
— Rekt Capital (@rektcapital) December 3, 2023
Are altcoins planning a rally?
Considering the influence of top altcoins on the entire market, it’s imperative to take a look at how coins like Ethereum [ETH] are doing, to better understand what to expect over the days to follow.
According to CoinMarketCap, ETH’s price has rallied by more than 10% in the last seven days. At the time of writing, it was trading at $2,251.09 with a market cap of over $270 billion.
The king of altcoins’ trading volume also surged over the last 24 hours, which acted as a foundation for the price uptrend.
Additionally, its Taker Buy Sell Ratio was also in the green, meaning that buying sentiment was dominant in the derivatives market.
Other bullish metrics included Ethereum’s Active Addresses and Transfer Volume, which registered increases in the recent past. However, its Exchange Supply raised concerns.
On the flip side, the token’s Exchange Reserve increased. Moreover, its Exchange Netflow Total was higher at press time compared to the last seven-day average, suggesting that selling pressure was high on ETH.
XRP shows promise as well
While Ethereum’s price rallied, XRP, the fifth-largest crypto, also showed bullish signs. The altcoin’s price had rallied by nearly 5% last week. At the time of writing, it was trading at $0.6332 with a market cap of over $34 billion.
AMBCrypto then checked XRP’s daily chart to see whether it would continue its rally, which can also somewhat influence the overall altcoin market, considering its large market cap.
The MACD displayed an ongoing tussle between the bulls and the bears. The Bollinger Bands indicated that XRP’s price was in a less volatile zone, decreasing the chances of further northbound price movement.
Nonetheless, the altcoin’s Relative Strength Index (RSI) registered an uptick and was headed above the neutral mark. Its Money Flow Index (MFI) also followed a similar trend, suggesting a continued uptrend.
Will meme coins play a part?
Meme coins have a major presence in the crypto space, mainly because of their sheer popularity. Therefore, if altcoins are preparing for a rally, we must also take a look at the meme space to see how they are doing.
We will begin with Dogecoin [DOGE], as it is the largest meme coin by market cap. Notably, DOGE managed to push its price up by more than 5% in just the last seven days.
At press time, it was trading at $0.09015 with a market cap of over $12.8 billion. Thanks to the price uptick, DOGE’s market dominance increased by 11%. Another bullish metric was its AltRank, which improved in the last week.
Shiba Inu [SHIB], which remained in the limelight this year because of the launch of its much-awaited Shibarium, saw a 7% increase in value over the last week.
However, the showstopper was Pepe [PEPE], as the meme coin registered double-digit growth last week. According to CoinMarketCap, it was up by over 17%, and at press time, it was trading at $0.000001386.
Therefore, considering the performance of these aforementioned meme coins, it will be interesting to see how they play their part in kick-starting an altcoin bull rally.
Keep an eye on Bitcoin
While a look at altcoins’ state is imperative to gauge the future, Bitcoin also plays a major role in shaping the market. As it is the largest crypto, its price trend influences the performance of other cryptos to a certain extent.
Interestingly, Bitcoin recently went above $40,000 for the first time after several months. Thanks to that, the Social Dominance of the king of cryptos increased. Positive sentiment around the coin also surged.
Read Ethereum’s [ETH] Price Prediction 2023-24
At press time, BTC was trading at $41,471.65 with a market capitalization of over $809 billion. Considering the condition of the entire market, the possibility of an altcoin rally seemed very likely.
However, the crypto market is infamous for its unpredictability, so it will be interesting to see the direction in which the wind blows over the coming weeks.