Altcoins to Avoid as Bitcoin Sub-$60k Hints at Extended Correction

by

As a seasoned crypto investor with over five years of experience, I’ve seen my fair share of market volatility and corrections. The recent sell-off that plunged Bitcoin below $60,000 has left me concerned about the potential impact on altcoins, particularly those that have been underperforming or facing regulatory issues.

On Wednesday, the cryptocurrency market experienced a surprising drop, causing Bitcoin‘s price to fall beneath $60,000. This unexpected decline led to a loss of 4% for Bitcoin, instigating corrections in the values of significant altcoins.

This week, the significant purchase of Bitcoin through ETFs led to a market rally. Yet, apprehensions grow regarding potential heavy selling due to distributions from the collapsed crypto exchange Mt. Gox and compulsory sales by authorities.

As a market analyst, I would advise investors to reconsider holding onto the specified altcoin due to the possibility of a prolonged price downturn. This cautious approach could help safeguard their investment portfolios from potential losses.

XRP functions as a digital currency, enabling swift and affordable cross-border transactions. As the indigenous token for the XRP Ledger (XRPL), it is part of an open-source, decentralized platform established in 2012.

Altcoins to Avoid as Bitcoin Sub-$60k Hints at Extended Correction

I’ve observed that XRP faced challenges in the initial half of 2024 as investors adopted a wait-and-see approach due to the ongoing legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC). The most recent data indicates that XRP currently holds a market capitalization of $26.3 billion, while its trading volume over the last 24 hours amounted to $1.037 billion.

As a crypto investor closely monitoring the market, I’ve noticed that XRP is presently trading at $0.47 based on daily analysis. This coin is currently facing a challenge as it tests the support trendline of a 6-year triangle pattern formation. So far, this dynamic resistance has functioned as an essential accumulation zone. However, with Bitcoin’s extended correction phase ongoing, there is a possibility that XRP could dip below this critical level.

Should a bearish breakdown take place, it might intensify the downward trend, potentially driving the value of the altcoin down below the $0.40 mark.

    Dogwifhat (WIF)

I analyzed a cryptocurrency named Dogwifhat (WIF), which emerged on the Solana blockchain towards the end of 2023. This digital currency was inspired by an internet meme that gained massive popularity, featuring a Shiba Inu donning a pink beanie hat.

Altcoins to Avoid as Bitcoin Sub-$60k Hints at Extended Correction

The volatile meme market frequently responds drastically to market fluctuations. For instance, during the market correction in June, the value of the WIF coin plummeted from its highest point at $4.08 to $1.92, representing a significant decrease of approximately 53%.

The line graph for Dogwifhat’s daily prices shows that it has been bouncing between two horizontal lines, suggesting a possible channel trend. Should this pattern continue, Dogwifhat may experience a further decrease of approximately 28% before encountering support at the lower boundary of the channel.

As long as the pattern remains intact, the downward trend for WIF is likely to continue.

As a blockchain analysis specialist, I’d rephrase it this way: I analyze Gala Games (GALA) as a dynamic gaming ecosystem where participants can generate both cryptocurrencies and non-fungible tokens (NFTs) by engaging in games on the platform.

Altcoins to Avoid as Bitcoin Sub-$60k Hints at Extended Correction

For the past four months, GALA‘s price trend has been consistently downward, indicated by the development of falling wedge formations. Consequently, the price has plummeted from its peak at $0.086 to the present trading value of $0.025, representing a significant drop of 70%. This decline in price has resulted in a reduced market capitalization, now sitting at $828.2 million.

As long as the descending triangle pattern remains in place, selling from traders may persist, extending the ongoing price correction. For buyers to take charge of the asset, surpassing the resistance line above is crucial. This breakthrough could indicate a change in market sentiment and possibly reverse the current bearish trend.

Key Takeaway

The drop in Bitcoin’s price below $60,000 on Wednesday has sparked concerns of further corrections within the crypto market. It appears that the past two weeks represented a brief respite from selling pressure, but now it seems to have returned with renewed intensity. A clear daily close below $60,000 for Bitcoin could potentially indicate a more extended period of correction for altcoins as well.

Read More

2024-07-03 19:44