The general cryptocurrency marketled by Bitcoin (BTC), has recently consolidated after receiving a boost from greater institutional interest. In particular, with Bitcoin settling comfortably above the $30,000 mark, attention has shifted to altcoins and their potential to attract capital inflows and challenge Bitcoin's dominance.
In this sense, several cryptocurrency Analysts have suggested that technical indicators point to an imminent altcoin breakout. For example, on July 9, the pseudonymous cryptanalyst moustachealso know as el_crypto_prof, tweeted that altcoins currently have significant "sending potential." The analyst pointed out that the current state of the market resembles the previous cycle.
According to the analysis, the current altcoin market capitalization has retested the values โโthat acted as an anchor during the 2021 bull run.
โAltcoins have absolute โsending potentialโ, if you ask me. The similarities with the last cycle are impressive, aren't they? said the analyst.
Similarly, another analyst with the pseudonym CryptoFaibik He suggested that an altcoin rally is coming based on the historical dominance of Bitcoin's crypto market cap. In this case, the analysis suggested that the dominance is likely shrinking, indicating that investors are putting money into altcoins.
Dogecoin (DOGE)
The meme coin has maintained a stable position, showing resistance against a stagnant valuation, in line with general market trends. However, there was one notable event for Dogecoin (DOGE) in recent weeks as it saw a brief rise, breaching the $0.07 milestone for the first time in four weeks. This rise came on the heels of the largest digital asset drawdown witnessed in 2023.
Despite this positive development, discussion and general interest around DOGE has remained relatively low. Santiment, a blockchain and cryptocurrency analytics platform, reported This on the 4th of July.
Considering previous cases where Dogecoin generated increased interest leading to significant rallies in 2021, investors are hoping to take advantage of factors such as improved network development to propel DOGE to new highs in the event of altcoin season.
Additionally, a recent report by Finbold stressed that PricePredictionsa cryptocurrency tracking and analysis platform, has used advanced machine learning algorithms to project a price of $0.067428 for Dogecoin by July 31, 2023. At press time, DOGE was trading at $0.065, which represents weekly losses of more than 2%.
Litecoin (LTC)
In recent weeks, Litecoin (LTC) has seen a number of fluctuations in its price action, creating a mix of ups and downs. In particular, the asset has been attracting attention in anticipation of the halving event, with LTC setting its sights on the crucial $100 resistance zone.
As the event approaches, there have been significant changes in Litecoin's on-chain metrics, signaling the possibility of an upcoming rally. One noteworthy development is the steady increase in the number of millionaire addresses for Litecoin, such as reported by on-chain crypto analytics platform Santiment in early July. This adds to the growing anticipation surrounding the halving event.
The 2023 Litecoin halving is set to reduce the block reward from 12.5 LTC to 6.25 LTC. Such scarcity-driven mechanisms often generate increased investor interest and trigger substantial price movements.
Simultaneously, LTC demonstrates increased adoption across several use cases, particularly payments. In particular, Litecoin outperformed bitcoin in June to become the most widely used digital payment asset on BitPay.
In addition, Litecoin has also embarked on major smart contract projects through Ordinals Inscriptions in the protocol, marking a significant change in its functionality.
At press time, Litecoin was trading at $96.74 with daily losses of around 1%, while on the weekly chart, LTC is down 12%.
Polygon (MATIC)
polygon (MATIC) suffered a setback in value after the Securities Exchange Commission (SECOND) classified the token as a security. Since then, the token has struggled to recover from the shock of this news.
Despite the setback caused by the SEC filing, MATIC is relying on its strong fundamentals to regain its footing. In early July, for example, for the first time since the lawsuit, the Polygon price broke above the crucial resistance level of $0.70.
While the MATIC price has yet to fully recover, the Polygon Network has witnessed an increase in user engagement over the week. For example, the number of MATIC daily active addresses (7 days) gradually increase from 1.3 million users on June 27 to 1.34 million active users on July 6.
This increase in Polygon user demand has had a positive impact on the MATIC price, maintaining a bullish outlook for most of the week. At press time, MATIC was trading at $0.70, experiencing daily and weekly gains of 2% and 4%, respectively.
In general, the possibility of an altcoin rally will likely depend on other market conditions, such as the price movement of Bitcoin.
Disclaimer: The content of this site should not be considered as investment advice. The investment is speculative. By investing, your capital is at risk.
