As an analyst with extensive experience in the cryptocurrency market, I believe that the recent correction in Layer 1 altcoins was largely driven by the selling pressure from Bitcoin miners and U.S.-based ETFs. However, with Bitcoin recovering from its decline to $60,000 and the supply pressure easing, altcoins have started to establish local bottoms.
In June, the prices of many early altcoins underwent a substantial decrease, coinciding with Bitcoin‘s drop to $60,000. The primary causes behind this correction were Bitcoin miners selling their coins to meet expenses and massive withdrawals from US exchange-traded funds (ETFs).
Last week, the selling pressure started to ease up, giving Bitcoin a chance to bounce back from its dip below $60,000. Meanwhile, altcoins found their footing and established temporary lows.
As a crypto investor, I’ve been closely following the market trends and recently took note of a significant observation made by the well-known trader CryptoDan. He pointed towards a positive shift that could potentially lead to a bullish rally for the market in the third quarter of 2024. The recent X post served as a highlight for me, adding more credence to this potential development.
“채굴자들의 매도 우려 해소, 3분기 상승 랠리 가능”
최근 암호화폐 시장을 하락시킨 고래 중 하나는 채굴자들로 볼 수 있습니다.
최근까지 시장은 채굴자들의 매도물량을 완벽히 소화하지 못하고 있었으나 아래 두 가지 근거로 채굴자들의 매도 압력이 매우 낮아졌다고 볼 수 있습니다.
1.…
— Crypto Dan (@DanCoinInvestor) July 1, 2024
As a crypto investor, I’ve noticed a substantial decline in the amount of Bitcoin mined and sold on exchanges since May.
As an analyst, I’ve noticed that the over-the-counter (OTC) trading desk volume used by miners for selling Bitcoin had been accumulating significantly, indicating a buildup of unsold supply. However, on June 29th, this volume was completely absorbed. It’s a strong indication that a major buyer emerged in the market and purchased a substantial amount of Bitcoin from these miners.
Based on recent trends, here is a list of promising Layer 1 crypto investments that could yield significant returns during the anticipated post-correction market surge.
Layer 1 Altcoins -Solana (SOL)
Solana is a powerful blockchain platform capable of hosting decentralized apps (DApps) and digital currencies, with a focus on delivering superior performance.
As an analyst, I’ve observed that Solana’s price action over the previous three months has followed a symmetrical triangle pattern. This means that the highs and lows of the price have been converging towards each other, creating dynamic resistance and support levels. These trendlines have contained the price movement within this consolidation phase until the Solana price is ready for a significant breakout.
As a researcher studying the cryptocurrency market, I’ve noticed an uplifting trend where Solana’s (SOL) price bounced back from its support level at $122 and soared by 21.5%, reaching a trading value of $148.2. This upward momentum was further fueled by the recent regulatory filings submitted by VanEck and 21Shares to the US Securities and Exchange Commission (SEC) for launching a Solana Exchange-Traded Fund (ETF).
If Solana’s price breaks out from the triangle pattern, it could significantly boost demand and propel the coin towards its next major resistance levels at $210 and then $354.
The Cardano (ADA) blockchain stands out due to its academic underpinnings, with a focus on rigorously researched and scientifically validated techniques for its design and operation.
As a researcher studying the cryptocurrency market, I’ve observed that the price of ADA has undergone a significant correction in the past three months due to the forming of a falling wedge pattern. This bearish trend has caused the asset to plummet from $0.81 to its current price of $0.357, resulting in a substantial loss of approximately 56%.
As a crypto investor, I’ve noticed the broader market undergoing some relief in supply pressure lately. This has led to a significant surge for Cardano (ADA), pushing its price up by an impressive 13% to hit $0.4. With this growth, the market capitalization of ADA swelled to a substantial $14.4 billion. Boosted by an intraday gain of 3.21%, buyers have been determinedly testing the resistance trendline within the wedge pattern.
As an analyst, I would interpret a potential break above the current pattern as a potential indicator that the correction phase has come to an end. This could pave the way for buyers to propel the price beyond the $0.8 mark.
Avalanche (AVAX)
AVAX, or Avalanche, is a sophisticated blockchain system known for its innovative design, specifically tailored to overcome the limitations of previous generation blockchains in terms of scalability and adaptability.
In the midst of the Exchange-Traded Fund (ETF) frenzy, whispers of a potential AVAX-specific ETF have swept through the cryptocurrency community, leading to a significant boost in Avalanche’s coin price. On May 24th, AVAX bounced back from its support level at $23.5 and soared by 26.3%, reaching a peak of $29.75. Based on data from CoinMarketCap, Avalanche currently boasts a market capitalization of $11.73 billion, while its 24-hour trading volume hovers around $321.7 million.
A notable shift in AVAX‘s price trajectory has occurred, signaling a bullish breakthrough from the descending trendline of the falling wedge formation. If this trend reversal holds true, AVAX’s price may attempt to surpass its previous peak of $65.37.
Hedera (HBAR)
As a researcher exploring the world of decentralized networks, I’d describe Hedera (HBAR) as a publicly accessible platform. Instead of relying on the conventional blockchain mechanism, it employs the distinctive hashgraph consensus algorithm. This innovative approach offers an intriguing contrast to traditional blockchain technology.
For the past two weeks, the HBAR price has been oscillating around a key support line of $0.073, which has held firm despite several attempts by the market to push it lower. The daily charts reveal that buyers have been rejecting these downward price movements, creating smaller candlesticks, suggesting growing demand at this level. This pattern increases the likelihood of a price reversal.
As a researcher, I’ve observed that by the time this report is published, the Hedera coin boasts a market capitalization of approximately $2.73 billion. Notably, there has been a significant increase in trading activity since yesterday, with a volume of around $45.9 million – representing a 63.75% surge.
Should the market exert additional purchasing power, HBAR may surpass the $0.085 barrier, indicating a potential early shift in trend. The achievement of this milestone could instill confidence among buyers, potentially pushing prices up towards $0.12 and $0.14.
Key Takeaway
The crypto market is experiencing less pressure from the supply side as the amount of Bitcoin being transferred from miners to exchanges for sale has decreased. This change has given altcoins a chance to establish solid support bases and set the stage for an uptrend. With the market now in a post-correction recovery phase, Bitcoin’s price is aiming for new record highs, creating attractive long positions in prominent layer 1 altcoins.
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2024-07-01 20:18