Markets Turn Red: Was it Just an Altcoin Week? And Is It Over?
Up until yesterday, altcoins have been enjoying a marvelous week with high returns.
Dogecoin emerged as the winner, pumped by zoomers on Tik Tok. But the market has turned, and DOGE has fallen 19.55%, even the popular social media platform suffered an outage yesterday. These losses came after Bitcoin dropped to about $9,050 in line with the S&P 500 on Thursday.
Today’s big losers in the crypto space include VeChain (13%), Stellar (8.88%), IOTA (8.57%), Ren (7.81%), Cardano (7.45%), Aave (7.26%), Synthetic (6.50%), XRP (5.09%), Kyber Network (4.92%), Chainlink (4.89%), Zcash (4.74%), and Tron (3.74%).
Overall, the total market has lost about $7 billion.
So, is it really an alt-season?
Analysts have been calling out how bitcoin has been trading sideways, and its dominance fell off while altcoin rallied, which are some good signs that it is an alt season. It has also been argued that Dogecoin’s pump either marks the start of the alt season or confirms it.
However, trader DonAlt is of a different opinion. In his last episode of ByBit sponsored TechnicalRoundup YouTube Channel, he argued that this isn't’ the first time the market is calling out an Alt-Season on Dogecoin’s pump.
He pointed out how, on numerous previous occasions since 2018, when DOGE popped even harder, the market made calls for an alt season every time only for it to turn out to be nothing but a short-lived spike.
The trader isn’t “entirely sure” if it could be an alt season because it doesn’t make much sense to have one right now and is “poorly timed.”
But these are altcoins, so everything is possible, and if this is really the alt season, DonAlt feels it,
“has more chances to be one than all the other ones before just because you are at high timeframe support areas for the bigger important coins.”
Several coins are still trending up amidst the red market such as Akropolis (93%), Elrond (29%), BitTorrent (13.47%), Ampleforth (11.63%), Holo (8.09%), Stratis (7.91%), Cosmos (6.43%), and others. However, the greens are not as significant as they have been earlier this week.
According to Richard Rosenblum, co-founder and co-head of trading at GSR, the cryptocurrency market is having a “mini altcoin boom,” and those that are too focused on bitcoin right now are missing out. In his view,
“there’s a lot of action in the space that doesn’t get as much focus as it should.”
But like many others in the crypto space, he believes not every project is “going to succeed in the end,” only a handful of projects will be the leaders in the space, good enough for investment.