Key Points
- The altcoin market capitalization has reached a level historically followed by price increases.
- Ethereum shows bearish metrics, while XRP and BNB appear bullish.
The focus may be on the upcoming Bitcoin [BTC] halving, but altcoins might be preparing for a bull rally. Recent data shows the altcoin market capitalization has reached a point that has historically triggered price upticks. This prompts a closer look at top altcoins like Ethereum [ETH], BNB, and XRP.
Bitcoin Halving and Altcoins
Bitcoin’s fourth halving is imminent, which will cut the mining reward by 50%, from 6.25 to 3.125 bitcoins. The last halving occurred in 2020, reducing the block reward from 12.5 to 6.25. During this period, altcoins behaved intriguingly.
Crypto analyst Titan of Crypto recently highlighted the altcoin market capitalization. According to his tweet, the Fibonacci retracement level was at 61.8% on the monthly chart. Historically, when the metric hit this level, altcoins started bull rallies. Similar events took place in 2021 and 2016.
Ethereum, XRP, and BNB Analysis
Currently, altcoins are struggling. To determine if a bull rally could occur, the state of Ethereum was analyzed. CryptoQuant’s data showed that Ethereum’s net deposit on exchanges was high, indicating weak buying pressure. Selling sentiment was high among funds and trust investors, as shown by the red Funds Premium.
XRP, on the other hand, has experienced a 20% drop in the last seven days, according to CoinMarketCap. This price drop triggered accumulation as buying pressure increased. Santiment’s data revealed a spike in XRP’s exchange outflow, and a decrease in its supply on exchanges, suggesting high buying pressure.
BNB’s metrics were optimistic. While most cryptocurrencies declined, BNB’s value increased by 1.3% in the last 24 hours. The coin’s price rise was accompanied by an increase in its Open Interest, suggesting the price trend might continue.
In conclusion, if XRP and BNB’s metrics lead to bull rallies, they could spearhead the next altcoin season post-Bitcoin halving.
