XRP, Ethereum, Solana: Do Altcoins Face Another Drop?

Home » Crypto news » Analysis of the price of Bitcoin and cryptocurrencies » XRP, Ethereum, Solana: are altcoins at risk of another fall?

https://cryptoast.fr/altcoins-xrp-ethereum-solana-chute-glassnode/

The altcoin market is showing signs of weakness. According to the latest weekly report from Glassnode, published this Wednesday, the proportion of large cryptocurrencies in an upward trend has declined significantly since the start of the month. Enough to fear a new correction, particularly for Ethereum (ETH), XRP and Solana (SOL).

🔍 Discover our top 10 best cryptocurrency exchange platforms

Glassnode tracks the proportion of the top 100 altcoins whose price is moving above their 200-day moving average, an indicator for assessing the long-term trend.

This proportion reached 88% on October 4, surpassing its peak at the start of 2023, set at 80%. It has since fallen to 66%. Out of a larger sample of 500 cryptocurrencies, only 42% of tokens are now trading above their 200-day moving average.

In 2023, this indicator also peaked in February, before rebounding in April during the craze for PEPE and BRC-20 tokens. The market then gradually lost its strength during the summer.

This weakness is reflected in the performance of the main cryptocurrencies. Ethereum fell by 11.2% since the start of the month, Solana by 12.9% and XRP by 13.1%, compared to only 3% for Bitcoin.

👉 On the same subject – What is Ripple’s XRP? Everything you need to know about cryptocurrency

However, the three altcoins have rebounded slightly in the last 24 hours. This Wednesday, Ethereum is trading around $2,350, XRP at $1.33 and Solana at $102.

Another sign of running out of steam: trading volumes. According to Glassnode data, the spot volume of the entire crypto market is now about 3 times that of Bitcoin, up from almost 4 times at the end of September. This ratio has thus returned to its median since 2022.

This decline suggests that the speculative craze for altcoins has subsided after several weeks of sustained activity. However, it does not necessarily mean that investors are massively selling their tokens.

The price of Bitcoin is moving around $81,000, still below the resistance of $84,000 to $85,000. The decision of the American Federal Reserve (Fed), expected at the end of the day, could also weigh on the market. Analysts mostly expect rates to remain stable, but remain attentive to indications regarding the coming months.

👉 On the same subject – Bitcoin: historically low volatility, a major movement to come?

Machine-translated from French