The general cryptocurrency market, led by Bitcoin (BTC), has recently consolidated after receiving a boost from increased institutional interest. Notably, with Bitcoin comfortably establishing itself above the $30,000 mark, attention has shifted to altcoins and their potential to attract capital inflow and challenge Bitcoin’s dominance.
In this regard, several cryptocurrency analysts have suggested that technical indicators point to an imminent altcoin breakout. For instance, on July 9, pseudonymous crypto analyst Moustache, also known as el_crypto_prof, tweeted that altcoins currently have significant “send potential.” The analyst pointed out that the current market state resembles the previous cycle.
According to the analysis, the current altcoin market cap has retested the values that acted as an anchor during the 2021 bull run.
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“Altcoins have absolute “send potential,” if you ask me. The similarities to the last cycle are impressive, aren’t they?” the analyst said.
Similarly, another analyst with the pseudonymous CryptoFaibik suggested that an altcoin rally is incoming based on historical Bitcoin crypto market cap dominance. In this case, the analysis suggested that the dominance is likely shrinking, indicating investors are putting money in altcoins.
Dogecoin (DOGE)
The meme coin has maintained a steady position, showing resilience in the face of a stagnant valuation, in line with the overall market trends. However, there was a notable event for Dogecoin (DOGE) in recent weeks as it experienced a brief surge, surpassing the $0.07 milestone for the first time in four weeks. This surge came on the heels of the largest shorting of the digital asset witnessed in 2023.
Despite this positive development, discussions and general interest surrounding DOGE have remained relatively low. Santiment, a crypto and blockchain analytics platform, reported this on July 4.
Considering the past instances where Dogecoin garnered increased interest leading to significant rallies in 2021, investors hope to leverage factors such as enhanced network development to propel DOGE to new highs in the event of altcoin season.
Additionally, a recent report by Finbold highlighted that PricePredictions, a crypto tracking and analytics platform, has utilized advanced machine learning algorithms to project a price of $0.067428 for Dogecoin by July 31, 2023. By press time, DOGE was trading at $0.065, representing weekly losses of over 2%.
Litecoin (LTC)
In recent weeks, Litecoin (LTC) has experienced a series of fluctuations in its price action, creating a mixture of ups and downs. Notably, the asset has been garnering attention in anticipation of the halving event, with LTC setting its sights on the crucial $100 resistance zone.
As the event draws near, there have been significant changes in the on-chain metrics of Litecoin, indicating the possibility of an upcoming rally. A noteworthy development is the consistent increase in the number of millionaire addresses for Litecoin, as reported by the on-chain crypto analysis 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 heightened investor interest and trigger substantial price movements.
Simultaneously, LTC demonstrates increased adoption in various use cases, particularly in payments. In particular, Litecoin surpassed Bitcoin in June to become the most utilized digital payment asset on BitPay.
Moreover, Litecoin has also embarked on important ventures into smart contracts through Ordinals Inscriptions on the protocol, marking a significant shift in its functionality.
By press time, Litecoin was trading at $96.74 with daily losses of about 1%, while on the weekly chart, LTC is down 12%.
Polygon (MATIC)
Polygon (MATIC) faced a setback in value after the Securities Exchange Commission (SEC) classified the token as a security. Since then, the token has been striving to recover from the impact of this news.
Despite the setback caused by the SEC’s classification, MATIC relies on its strong fundamentals to regain its footing. In early July, for example, for the first time since the lawsuit, the price of Polygon broke above the crucial resistance level of $0.70.
While MATIC’s price has not yet fully recovered, the Polygon Network has witnessed an upsurge in user engagement throughout the week. For example, the number of MATIC daily active addresses (7 days) gradually increased from 1.3 million users on June 27 to 1.34 million active users as of July 6.
This surge in demand from Polygon users has positively impacted the MATIC price, maintaining a bullish outlook for most of the week. As of 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 Bitcoin’s price movement.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
