Key Points
- Altcoin season index has decreased from 88 to 71.
- Increased bearish sentiment observed around Ethereum (ETH), Solana (SOL), and Binance Coin (BNB).
The altcoin season index has seen a notable decline, dropping from 88 to 71.
This comes amid growing bearish sentiment surrounding key altcoins such as Ethereum (ETH), Solana (SOL), and Binance Coin (BNB).
Altcoins’ Current Situation
Despite recent rallies, altcoins have experienced a slowdown in the past day.
Notwithstanding, the potential for an upcoming altcoin season remains.
This is due to the altcoin market cap chart, which is mirroring patterns observed in previous cycles.
Major altcoins such as Ethereum, Binance Coin, and Solana have seen price corrections in the last 24 hours.
According to CoinMarketCap, these coins’ prices have decreased by 2.5%, 3.5%, and 4%, respectively.
Even memecoins, including Dogecoin (DOGE), the world’s largest memecoin, have not been exempt, with its value falling by over 5% during the same period.
Bitcoin’s Impact and Possible Altcoin Season
Interestingly, not only altcoins but also Bitcoin (BTC), the leading cryptocurrency, has shown signs of correction.
This trend could be a diversion, providing an opportunity for investors to purchase coins at a lower price.
A crypto analyst, Moustache, recently highlighted a pattern in a tweet.
The altcoins market capitalization chart is following a trend seen previously during the 2016 and 2020 altcoin seasons.
Historically, altcoins have rallied sharply after this pattern, suggesting the possibility of a similar occurrence.
Moustache’s tweet also suggested that altcoins might gain momentum in the upcoming weeks or months.
The altcoin season index has decreased after peaking at 88, currently standing at 71.
As this value is close to 75, the potential for an altcoin season, considering the trends of 2016 and 2020, cannot be dismissed.
The Road Ahead for ETH, SOL, BNB
Despite past trends suggesting an altcoin season, top altcoins such as Ethereum, Solana, and Binance Coin have not reacted as expected.
Their recent price declines have also impacted their social metrics.
These altcoins have seen significant drops in their weighted sentiments, indicating a rising bearish sentiment in the market.
Data from Coinglass revealed another bearish metric for these cryptocurrencies: their long/short ratios have dropped significantly in the 24-hour timeframe.
When this metric decreases, it suggests that there are more short positions in the market than long ones, indicating a potential price decline.
While these metrics suggest continued price drops, nothing can be definitively stated due to the unpredictable nature of the crypto market.
Past trends and market unpredictability might surprise investors, allowing altcoins to rally in the coming weeks.
