Crypto Market Down: Why XRP, Chainlink, and Solana Prices Are Rising?

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As a seasoned researcher with years of experience navigating the cryptocurrency market, I find the current state of altcoins intriguing. The recent downtrend in Bitcoin was a stark reminder of the volatility inherent in this space, yet the resilience displayed by altcoins like XRP, Chainlink, and Solana is a testament to their underlying potential.

Lately, the crypto market has witnessed a substantial drop, with Bitcoin’s price dipping below $100,000. Despite BTC bouncing back from this decline, other cryptocurrencies are still showing signs of the fallout. Interestingly, however, altcoins such as XRP, Chainlink, and Solana have managed to rebound against all odds, and let me explain why.

Crypto Market Downtrend or Altcoin Season?

Even though the crypto market is currently experiencing a downturn, Cole Garner’s analysis provides a fresh perspective on the potential altcoin surge. As per Cole, the correlation between altcoins and Bitcoin has reached its lowest in the past year, which typically occurs during reset phases of a bull cycle. This suggests that altcoins may start moving separately from Bitcoin’s price fluctuations, implying more recoveries and potentially setting the stage for an altcoin rally soon.

To put it simply, he asserted that a significant adjustment and rebalance could occur within the coming 1-2 weeks. Concurrently, another expert suggested that altcoins might reach their dominance around Trump’s inauguration, as Bitcoin was expected to experience a 20-25% decrease, creating an excellent chance for buying Bitcoin at a lower price. This situation would also offer room and opportunity for altcoins such as Ethereum and Solana to surge in value.

Despite Bitcoin’s consolidation causing a significant dip in XRP, Chainlink, and Solana prices initially, these altcoins have since bounced back strongly. This resurgence has sparked anticipation among users for an ‘altseason’, as the drop in the ASI from 65 to 53, moving closer to 50, reduces the likelihood of the dominance of the altcoin market.

What’s Behind XRP, Chainlink, and Solana Price Recovery?

Since its recent dip, XRP has demonstrated the most significant rebound, climbing approximately 8% on the price charts. As a result, it is now being traded at $2.41 following its regained strength, and the trading volume has escalated by 34%, reaching $23.15 billion. Additionally, technical analysis suggests that buyers are in control, which appears to be driving XRP’s early recovery amidst the cryptocurrency market slump. It is also worth noting that Chainlink has experienced a similar trend, currently trading at $25.28 after a 4.3% increase following the drop. Similarly, there is evidence of buyer control in Chainlink, as its trading volume has risen by 48%, reaching $2.18 billion.

Due to a recent improvement in Chainlink’s performance, there has been an increase in its demand. Analysts predict that the price of LINK might reach $30 during the holiday season.

To summarize, the value of Solana increased by 2.68% from $200 to $210 while buyers were present, causing the total value (TV) to rise by 6% to $7.12 billion. With growing excitement surrounding the altcoin season, it’s possible that Solana could continue to climb higher as the correlation heatmap suggests a trend of decoupling from Bitcoin price movements, indicating that Solana and other altcoins are moving independently. Furthermore, the increase in TV for all three assets points to investors focusing more on high-potential tokens during this market restructuring phase.

What’s Next?

If the Federal Reserve made a 25bps rate cut, the investors anticipated that Bitcoin’s price would stabilize rather than increase. As soon as the announcement was made, a decline in the crypto market started. Interestingly, this event also suggested that the period for altcoins might be approaching, since their correlation to Bitcoin reached its lowest point in a year, indicating a possible reset of the bull cycle. According to crypto analyst Cole Garner, this change should become evident within the next 1-2 weeks.

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2024-12-19 16:27