The crypto bull run mania is back in play. Precisely, it is the altcoins yet again that have begun to make a move in the market to the upside. It is a typical trend that the altcoins outperform Bitcoin token in the long run. And the same trend seems to continue in the current push north as well.
In terms of correlation, the entire crypto market is slightly off, but the overall market being bullish is sufficient. Based on the price action that changes every day, new leaders and followers emerge frequently. For instance, Bitcoin and Ethereum crypto were the first ones to transit from a sideways market to an uptrend. Technically speaking, these two cryptos broke through a major Resistance level before any other crypto. But with the momentum picking up with altcoins, the leaders have shifted. Bitcoin began to consolidate and move in a channel state, while altcoins started to propel with high intensity. In fact, a few altcoins even made a new all-time high.
As of today, only a few altcoins have outperformed the world’s two largest cryptocurrencies and are now trading much higher than their previous all-time highs. Of course, they are currently the best from the lot, but getting into these cryptos at these higher prices might now seem to be the best decision, given there are a lot of other cryptos that are anticipating a breakout very soon.
Insights from the Initial Crypto Gainers
In the past week or so, there has been barely any major price action on Bitcoin. Based on the high percentage returns of altcoins in the last 14 days, it is evident that the institutional buyers are gunning for the altcoin market at the moment.
Looking at the top cryptocurrencies in terms of market cap, the only handful of cryptos had an extraordinary bull run lately. However, if investors have missed these opportunities, we can analyze these moves and use them as a tool to predict the other altcoins in the same basket.
ADA Touches its All-Time-High, while LUNA and SOL Begin to Retrace
Cardano (ADA), Terra (LUNA), and Solana (SOL) are a few of the top 25 market cap cryptos to reach and trade above their ATH. Both Terra (LUNA) and Solana (SOL) were in sync for the longest time of the consolidation and also made their breached their all-time highs on the same day, 16th August. Following LUNA and SOL cryptos, ADA went on to make its new highs today, four days later than the other two.
Terra and Solana are currently retracing after heading about 40% (average) higher than the ATHs. But as these leaders are retracing to the downside, the rest of the altcoins have begun to gradually breakout from their long-held Resistance level. Thus, we clearly ascertain that all cryptos are not in perfect correlation but are certainly moving together on the bigger picture.
Binance Coin on the Verge of Breakout
The third-largest cryptocurrency is finally back in action. The consolidation that lasted for over three months is gradually breaking out.
The crash in May had brought the price of BNB all the way down to the higher timeframe Support levels around $280. Despite the strong push down from the sellers, the buyers held firm, as they reacted off strong from the Support area.
Later, the market took a miniature Resistance at $400, where the bears dropped the price below the Support. However, the demand zone at around $220 reacted off aggressively, confirming the existence of buyers in the market.
And on the third attempt from the buyers, the price headed to the Resistance level with better momentum.
Thus, with the sellers unable to perform despite getting higher discounts, it is highly probable for BNB crypto to blast north in the subsequent trading sessions.
Polkadot (DOT) to Test $44
Polkadot, one of the most popular parachains in the crypto industry, is surprisingly struggling to make a higher high. Its similar market cap peers are, in fact, trading at much higher technical levels as DOT crypto. But the strong fundamentals do not change the fact of the price touching the all-time highs soon.
The price action of Polkadot has been quite different from the rest of altcoins. As DOT gained massive popularity back in 2020, the bull run began much earlier than other cryptos. For instance, DOT had its most recent major push to the north in February, while many other altcoins had it in March, a month later. As a result, the consolidation after the previous breakout was longer than anticipated.
The interest in DOT looked to have faded out in May as the market went into a downtrend. However, a major bounce back at $12 (demand area) was an indication that the institutional bulls are still in the game.
The market is currently trading at higher levels around $28, and sellers are certainly having a hard time pushing the prices south. Hence, the momentum of the market could drive the price of DOT crypto to the next level of Resistance at $44 in the near term.
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