New Years Parties May Have Ended, But Altcoins Haven't
Bitcoin may still just look like an asset continuing to struggle just to stay above $17k, but that doesn't mean that altcoins have been sticking around with the same flat price performances:
We've actually seen some 7-day altcoin breakouts that resemble some of the same kinds of returns that we saw back when life was good in the crypto world.
- Solana ($SOL) +40%
- Lido Dao Token ($LDO) +42%
- Bitdao ($BIT) +41%
- Aptos ($APT) +21%
These are some pretty nice returns during what the crowd continues to perceive as just another week in the bear market that started all the way back in November, 2021 following all-time highs.
Just a week ago, many were riding off Solana as a dead project. But here it is seeing a huge volume spike after a major +17% decoupling from the markets:
Watch for its red social dominance line to potentially spike, which would indicate the crowd is beginning to recognize SOL's recovery. Ideally, it's best if volume continues to climb while
discussions about it stay quiet. It is also being heavily shorted on perpetual contracts right now, which is a plus for prices continuing upward.
And another old friend, Ethereum Classic, is enjoying a pretty nice rally of its own. Not only is volume high, but it's also being shorted big time by traders one exchanges.
So could this altcoin recovery trend continue? Just 10 hours ago, we posted about a pretty significant crowd short bias, which we identified as a good indicator of some upcoming altcoin climbs. And that is exactly what played out:
Well after the run we saw in the past 24 hours, exchange funding rates are pretty mixed and hovering right around 0.00 once again:
Does this necessarily mean that the altcoin party is coming to an end? Absolutely not. But it does mean that the probability of alts continue to climb has diminished back to essentially a coinflip.
Traders need to be fearful, typically, for markets to climb. So let's watch closely to see if "buy the dip" trends start scattering all over the internet. If this rally is met with disinterest, then watch for some more exciting price surges to get the FOMO sentiment roaring back.
Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.
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