Key Points
- Ethereum, Solana, and Binance Coin show bearish trends despite speculation of a potential altcoin rally.
- Stablecoin market cap surpasses $160 billion, indicating new money entering the crypto space.
Despite the approval of Ethereum [ETH] ETFs and the anticipation of a bullish market turn, top cryptocurrencies like Ethereum, Binance Coin [BNB], and Solana [SOL] are showing bearish trends.
Altcoins Gearing Up?
Crypto analyst Milkybull recently highlighted a potential explosive move for altcoins. According to the analysis, a breakout of altcoins’ market capitalization above a certain level could trigger a massive bull rally.
Nansen’s tweet also suggested a bullish development, with the total stablecoin market cap surpassing $160 billion, indicating new money entering the crypto space.
Bearish Trends Prevail
Despite these predictions, the reality on the ground is different. According to CoinMarketCap, Ethereum was down by more than 3% in the last 24 hours. Similarly, SOL and BNB also experienced drops in their values.
Interestingly, despite the bearish price trend, the weighted sentiment of these tokens moved into the positive zone, suggesting investors remain bullish.
Ethereum’s weekly rally ended despite the hype around ETF approval. It was trading at $3,666 with a market cap of over $440 billion at press time.
Data from CryptoQuat showed both Ethereum’s Relative Strength Index (RSI) and stochastic in overbought positions, a bearish signal. However, the trend might change as buying pressure continues to remain high, as indicated by the drop in Ethereum’s exchange reserve.
Ethereum was testing its resistance near $3.7k. The Money Flow Index (MFI) gave hope for a price rise, while the Chaikin Money Flow (CMF) indicated a continued price fall.
Like Ethereum, SOL and BNB’s prices also dropped in the last 24 hours. At press time, SOL had a value of $166.6, while BNB was trading at $590.
Their derivatives metrics hinted at a trend reversal as their open interests declined along with their prices.
SOL’s CMF moved southward, and the RSI followed a similar trend, suggesting that bears would continue to dominate.
BNB’s technical indicators also gave a bearish notion, with both its CMF and RSI remaining low.
Considering these datasets, investors might have to wait a bit longer to witness an altcoins rally.
