Altcoin bounce is on the way

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As a seasoned crypto investor, I’ve seen my fair share of market volatility and corrections. Although the recent approval of Spot Ethereum ETFs by the SEC is undeniably positive news, the market’s reaction has been less than ideal with four consecutive days of downturn.

The cryptocurrency market has experienced a slump for the past four days in a row, an unexpected turn despite recent favorable news like the SEC’s approval of Spot Ethereum ETFs on Thursday. Will this downtrend persist, or is it time for a rebound?

Correction now over?

As a new crypto investor or trader, navigating the market’s volatility can indeed be challenging. Yet, it’s essential to understand that these price fluctuations are part of the nature of cryptocurrencies. If we were to see consistent upward trends without corrections, it could potentially lead to an unhealthy market situation. Instead, embrace the rollercoaster ride and keep learning from each experience.

If the recent correction for altcoins amounts to 8.4%, and if this local low truly marks the bottom, then such a decline is typical. We haven’t witnessed five consecutive red daily candles since October last year, which indicates that we might have reached the depth of this downturn.

Last test of support for altcoins?

As a crypto investor, I’ve been closely monitoring the daily chart of Total 3 (the combined market cap of all cryptocurrencies excluding Bitcoin and Ethereum). So far, the price has managed to hold above the critical support level at $666 billion. Following a successful breakout from the triangle formation and confirmation of this trend above the resistance line, I believe we could be witnessing the last challenge of this support before potential further upward momentum.

USDT Dominance facing rejection

As a crypto investor, I’m closely monitoring the USDT Dominance chart, which serves as an indirect reflection of the crypto market cap’s trends. Currently, it appears that USDT is facing resistance around the 4.5% mark. Historically, this level has been a point of contention since 2020, with several unsuccessful attempts to break above it. Given this past resistance, a potential rejection at this level seems plausible.

$LINK – first of the altcoins to bounce

As a crypto investor, I’ve noticed that among the individual altcoins, Chainlink $LINK has been one of the first to rebound. It’s possible that, as the oracle for the Ethereum network, it’s capitalizing on the approval of the Spot Ethereum ETF.

At the current price of $17.50, the cost is encountering resistance. On the other hand, a strong support level exists below at $16.40. It’s possible for the price to exhibit some volatility within this range, but if Bitcoin experiences another significant surge, it may pull the altcoin market upwards as well.

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2024-05-24 14:17