Some thoughts on altcoins!
1. This bull market is dominated by Wall Street institutions. The passage of ETFs is the biggest black swan for altcoins, and institutional funds do not recognize altcoins.
2. The market value of copycats remains at a historical high.
3. Compared with the previous bull market, the market value of new coins has generally increased from tens of millions to hundreds of millions, or even 1 billion US dollars, but the incremental funds are relatively small and accompanied by a large amount of unlocking.
4. Institutional intervention has made cryptocurrency speculation more rational, but has no new hotspot in the ETH ecosystem been formed?
5. After this clean-up, there will be a bull market in the sector's copycats. High-quality copycats will be favored, while some copycats will decline or gradually return to zero.
Potential altcoins worth paying attention to now
ETH
Ethereum is the second largest cryptocurrency in the global crypto market with a market cap of $423.971 billion. As of the time of writing, the circulating supply of the cryptocurrency is 120.154 million ETH. The maximum supply of the cryptocurrency is unlimited.
Ethereum’s total locked value (TVL) also saw growth, reaching $62.186 billion. The cryptocurrency’s token incentives also grew by 20.3% over the past 30 days.
Ethereum cryptocurrency derivatives data analysis
While Ethereum options volume has fallen 51% in the 24 hours since this article was written, derivatives volume has surged 83%.
At the time of writing, the cryptocurrency’s long/short ratio was 0.9616, with higher long liquidations in the subsequent 24 hours. Despite this, the cryptocurrency’s open interest continues to surge as seen on the charts.
ETH cryptocurrency technical analysis
After reaching a high of $3,974, the ETH cryptocurrency price paused and experienced some profit-taking.
ETH surged 25% in a matter of days after breaking out of a descending triangle pattern on the daily chart. Despite the significant gains, prices are down slightly from recent highs.
Looking ahead, a key resistance level lies at $3,780. If ETH can break out and sustain this level, it could signal a continuation of the uptrend and portend further price gains in the near term.
Technical indicators on the daily chart of the ETH coin also support the potential for an uptrend. Currently, the ETH price is finding support at the 50-day EMA. Moreover, the 50-day and 200-day EMAs have been holding a golden cross for a long time, reinforcing the bullish sentiment.
However, the MACD is giving conflicting signals as it is in a bearish crossover. Nevertheless, the MACD and the signal line are still in a bullish trajectory, indicating underlying positive momentum. Meanwhile, the RSI has fallen below the 50 and 14-day SMAs, indicating weak momentum for the cryptocurrency. It would be wise to wait for the RSI to rebound above the 50 level to confirm that the uptrend is back in strength.
CVX
Convex Finance (CVX) is a DeFi protocol on Ethereum that enhances staking rewards and yield optimization for Curve Finance users. CVX is an ERC-20 governance token that allows users to profit from Curve and Frax LP yields. It simplifies the staking process and maximizes returns, but involves risks and volatility inherent to DeFi.
Despite the recent 100% price surge, Convex Finance’s market cap has dropped 30% in the past 24 hours, resulting in a market cap of $283.224 million. The Fear & Greed Index is 74, indicating investor greed.
CVX cryptocurrency price technical analysis
After hitting a swing high of $4,799 in the past 24 hours, the CVX cryptocurrency price has fallen 41%.
CVX price has formed an inverted hammer on the chart and its low has also disappeared. Nevertheless, the price is still trading at the breakout level, which means it is likely to find support at the current level and continue to surge higher.
The 50-day and 200-day EMAs on the daily chart of the CVX coin are in a death cross, while the coin price is trading between the EMAs. This shows uncertainty in the price of CVX. The MACD and the signal line are showing a bullish crossover, while both indicators are in the negative territory. The RSI further showed strength on the chart and broke above the 14-day SMA and subsequently above the 50 level.
NEAR
Looking at the daily chart, NEAR price has been bullish since October last year, holding above the 200-day moving average. Sellers have been dominant recently, with the price falling below the 200-day moving average, indicating seller involvement.
Assuming NEAR price rebounds and crosses above 200-day EMA; most sellers may get stuck and face huge losses. Liquidity rush may lead to strong buying pressure. Price crossing above 20-day EMA may attract buyers to cross $10 mark in the coming weeks.
On the other hand, the recent selling pressure may trigger a bearish trend. Assuming that the Near Protocol cryptocurrency price is below the 200-day EMA, sellers may become confident, resulting in a bearish trend. If buyers fail to hold the $2.50 mark, the price may set a new all-time low.
According to technical indicators, the Near Protocol price is below key moving averages, showing bearish momentum. The MACD has created a death cross with the signal line and formed a red histogram.
According to technical analysis and market observations, Near Protocol price has experienced a sharp decline and is currently facing selling pressure. However, there are signs that the price may have reached a potential buy zone, especially at the $5.50 and $4.00 levels. From a long-term perspective, investors may find this price level attractive and a relatively large rebound may occur in the coming months with the possibility of reaching double-digit targets.
