As a seasoned researcher who has navigated through numerous crypto market cycles, I find myself at a familiar crossroads. The recent reversal of popular altcoins like Jasmy, Daddy Tate, and Reef is reminiscent of the ebbs and flows that characterize this dynamic market.
On Sunday, September 29th, many alternative cryptocurrencies experienced a significant setback due to the halt of Bitcoin‘s upward momentum just shy of $66,000, which had been on an uptrend.
Jasmy, Daddy Tate, and Reef reverse
On Saturday, JasmyCoin, a well-known Japanese cryptocurrency, experienced a drop and is currently priced at approximately $0.02326, marking an 8% decrease from its peak price.
In today’s market, the meme coin linked to internet personality Andrew Tate, known as Daddy Tate, hit a low of $0.1147. On the other hand, Reef plunged to $0.0052.
As a crypto investor, I’ve noticed that some of this month’s top performers have experienced significant downturns – a clear indication that some traders might be cashing out their gains. For instance, Moo Deng (MOODENG), the buzzing hippo-themed meme coin, dipped by 17%, while LandWolf (WOLF) plummeted more than 10%.
Consequently, the combined market capitalization of all cryptocurrencies monitored by CoinGecko dropped nearly 2%, down to approximately $2.4 trillion.
Nevertheless, cryptocurrencies have been some standout performers this month. Bitcoin surged more than 20% from its lowest point during the month and currently sits approximately 10% shy of its all-time high. The surge in value is why many altcoins have rebounded since, as they often excel during previous bullish trends.
Santiment warning
Two potential explanations for the recent decline of altcoins such as Jasmy, Reef, and Daddy Tate might be:
Although a positive outlook on social media might seem promising, Santiment cautions that market trends have a tendency to go against the general public’s predictions.
If you’re hoping to see Bitcoin reach a new record high, it might be best to be patient as the enthusiasm among investors seems to be running high at the moment. Currently, there are about 1.8 optimistic posts about BTC for every pessimistic one. Historically, markets tend to move in the opposite direction of crowd’s expectations.— Santiment (@santimentfeed) September 29, 2024
There’s a potential issue that the upward trend of Bitcoin might hit a roadblock at the downward line that joins its highest points since March. If this line doesn’t become a support instead, it could cause a significant drop in Bitcoin, and likely pull many other altcoins down with it.
If the price surpasses this level, as some experts suggest, it could propel towards the next potential resistance at $70,000 and potentially reach its record high thereafter.
2. Following a wave of profit-taking among investors due to the recent surge, these tokens retreated. This month, Reef reached an increase of more than 1,018% from its lowest point, while Jasmy climbed by 48%, and Daddy Tate rose by 144%.
Historically, altcoins often experience a pullback following a significant surge. For instance, recent data from the blockchain indicates that a Jasmy whale transferred tokens worth approximately $1.5 million to Coinbase. Additionally, three other wallets moved tokens valued at around $4.5 million to Coinbase within the past 24 hours.
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2024-09-29 15:32