Story Highlights
Altcoins face bearish pressure as bulls remain apathetic and market volatility slowly turns bearish
Additionally, whale interest in altcoins is slowly surging as popular altcoins record huge transactions.
It is well known that altcoins are following the second largest cryptocurrency Ethereum. Moreover, the possibility of an altcoin cycle arises when a coin shows strong strength and becomes stronger than Bitcoin. This has happened every time in the previous cycles, so it is expected that a similar trend will reflect the current scenario as well.
Unfortunately, the rally has failed to gather the required volume and momentum after sustaining a sideways trend for over a few weeks. As a result, it is now believed that the ETH/BTC pair may hit lower support levels, which could temporarily eliminate the possibility of an alt season.
The ETH/BTC pair had earlier broken below a critical trendline and has also failed to recover these levels. After a strong rejection, the pair declined sharply and started consolidating inside a narrow range. Currently, the bounce is very close to the lower support and as the volumes are decreasing on a weekly basis, the possibility of a break below the first support level emerges.
This could delay the start of the altcoin season which could have provided a good base for altcoins to spark a healthy rally. Now, the altcoin rally may take more time to flourish, with whale activity having surged significantly. Huge transactions – over $10 million – have been recorded on various networks, according to data from Santiment.
Popular altcoins such as Aave (AAVE), Apecoin (APE), Compound (COMP), ImmuableX (IMX), Lido DAO (LDO), and Measurable Data Token (MDT) have been attracting whales. However, the movements of these whales have led to a lot of speculation in the market, one of which could be preparation for an upcoming altcoin rally. Therefore, it is important to monitor the activities and behavior of whales right now to predict their upcoming moves within the space.