Altcoins Pull Back after Hitting Some ATHs: What to Expect Next?
With Bitcoin tremendously growing in value and reaching its new ATH of almost $69k last week, altcoins set some new records as well. The most prominent altcoin, Ethereum, climbed up to $4,878 last Wednesday. Solana hit its new ATH on 7 November, going up to $260. Polkadot has also surged significantly during the last couple of weeks and set its new ATH at $55. Shiba Inu hit its highest mark at $0.000086 on 28 October, a little bit before other coins surged. Many other altcoins have either reached or neared their ATHs, or just grew in their value dramatically during the last week. However, this period of crazy price increases led both Bitcoin and altcoins to pull slightly back. The charts taken from Coinmarketcap.com show clearly how the currencies dipped after setting their new records.
Avalanche is one of the few altcoins that kept on growing this week and reached its ATH just 2 days ago, setting the mark at $110.18.
So, now it looks like the bearish trend has begun, and the question is how long it is going to last? Let’s see what experts have to say about the future of the crypto market.
Not the Time to Sell
Most crypto experts agree that even though Bicoin and many altcoins are experiencing recession right now, it does not mean that the crypto market will keep falling for long. Many analysts are sure that this is only a slight correction necessary for currencies to go up even higher later.
I had this to say about the market fluctuations in my latest weekly crypto wrap on FXStreet:
“Despite all this happening, the majority of analysts, and me too, believe that we’re seeing a correction currently which is inside of a larger uptrend that recently brought us to new all-time highs. So panic-selling is not a good idea.”
Working every day with ChangeNOW.io PR and seeing the market moves closely, I imply that despite the recent dips in cryptocurrencies, one can still see their main tendency of going up, especially when comparing the charts with previous years. Yet let’s see what my colleagues have to say.
Ethereum Sets the Trend
Ethereum, which is generally considered the most important cryptocurrency after Bitcoin, is the trendsetter among altcoins. Many prominent coins and tokens followed ETH when it was rising and then fell back together with it. Even though Ethereum went all the way down to $4k this week, many crypto analysts still remain optimistic about the future of the coin.
For example, James Stanley, Senior Strategist for DailyFX.com, gives his comment about Ethereum in one of his recent articles:
“Amongst the major cryptocurrencies, Ethereum may continue to hold some allure given its usability with NFTs and smart contracts; themes that became very relevant during this most recent bull run, and the current pull back in Ethereum can highlight just how optimistic bulls might continue to be.”
Here, he also tries to predict the actions of bulls depending on the ETH’ price changes, attaching a chart with daily Ethereum’s market fluctuations for the last 7 months to prove his point:
“That 4k level will be huge for bulls as this is confluent with the 38.2% Fibonacci retracement of the most recent major move. A bit lower, around 3750, is where traders can look for invalidation of the bullish trend; if prices fall below that, a deeper retracement may be in the works towards the 3200 level.”
Different Ways to Look at It
There are many things Ethereum’s price could depend on. Some tie it to Bitcoin’s market fluctuations, but some think Ethereum develops its own way which is different from BTC. The trends set by the coin can also be interpreted in different ways.
Varuni Trivedi, a journalist for AMBCrypto, said in one of her recent articles:
“While there are some long-term bullish signs, there are persistent fears that ETH could retest the $4K mark as it tested the $4100 mark on 16 November. However, recently Ethereum saw one of its largest dormant circulation days of all time, with 1.82 million ETH moving addresses for the first time in five years.”
She explains that the demand for Ethereum could mean both good and bad. It’s either investors are actually getting more and more interested in trading with ETH, or there is a whale that has done a lot of buying lately in order to pump the currency.
Watch Out for Meme Coins’ Surges
The so-called meme coins, such as DOGE and Shiba Inu have already shown that they should be taken seriously. The currencies also grew in their value dramatically during the last month, but what should be noted is that their bullish trend started even earlier than that of Bitcoin, Ethereum and other cryptos.
A financial expert that writes under the name venturefoundΞr on Twitter, has recently posted this:
So, does this mean that we should be looking at DOGE and SHIB price changes to predict the next BTC and ETH moves?
Is Avalanche Mooning?
As mentioned above, AVAX has been rising in its price even after most other prominent cryptocurrencies dropped. This might have to do with the recent inclusion of the Avalanche blockchain into Deloitte’s system for constructing a disaster relief platform. The currency has been so popular since then that many think it has been overbought and overheated.
One of the crypto analysts from Twitter, Nico, described the latest AVAX’s movements and made predictions for its future ATH:
What Other Altcoins Are on the Rise?
It is always exciting to see what cryptocurrencies, that are not in the top 10 on Coinmarketcap yet, are gaining bullish momentum. A Twitter crypto expert that writes under the pseudonym SmartContracter has noticed the rise of LUNA and CRV. The analyst also made predictions about the possible fluctuations of the cryptos:
Of course, each cryptocurrency has its own course, but after reviewing some of the experts’ opinions, it is possible to try to draw general conclusions about altcoins. On the whole, as we can see, most coins dipped after experiencing some tremendous increases, including ETH, Solana, Polkadot, etc. However, at the same time, there are currencies that are still on the rise and are expected to grow even higher – Avalanche is the main example. Meme coins as well as Terra coin and Curve DAO Token are also something to look out for. Crypto market changes are really hard to predict, but no matter what is going on, the key is always not to panic, wait for the best moment to buy or to sell and always DYOR.
Please note that this article doesn’t contain any financial recommendations.
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