- Ethereum and BNB's prices dropped by 3% and 4%, respectively, over the past week
- XRP was also down by 8%, with most market indicators bearish too
The altcoin market has taken a blow of late after most cryptos witnessed a price correction. The top three altcoins, namely, Ethereum [ETH],BNB Chain [BNB], and XRP, were no exception. If the latest data is to be considered, the top three altcoins' combined market capitalization has reached a critical level, which can determine how the market might look in the days to follow.
Read Ethereum's [ETH] Price Prediction 2023-24
Altcoins can witness a rally if…
Mags, a popular crypto-analyst, recently posted a tweet on X (formerly known as Twitter), highlighting an interesting event related to altcoins. Currently, the total market cap of the top 3 altcoins is $320 billion. In doing so, he also shared two possible outcomes –
If the price breaks below the current support level, we can expect a re-test of the 2017 ATH, which is now in a strong monthly support zone around $240 billion. The second possibility is that if the price manages to break out above the local trendline resistance and front-run the monthly support level, we can expect an aggressive uptrend from here.
Since both possibilities are completely contrary from each other, a closer look at all three top altcoins can provide better clarity on which outcome is more likely.
Ethereum looks bearish
CoinMarketCap's data revealed that the king of altcoins' price plummeted by more than 4% last week. At the time of writing, ETH was trading under the $1,600-mark at $1,560.32 with a market cap of over $187 billion. There was more bad news, as most on-chain metrics were also in the sellers' favor.
For example, Ethereum's exchange reserve was increasing at press time. This meant that selling pressure on the token has been high. In fact, both ETH's Korea premium and Coinbase premium were red too – A sign that investors from the US and Korea have been selling their assets.
Source: CryptoQuant
ETH's trading volume also plummeted over the last few days. This indicated that investors have been reluctant to trade the token. Selling sentiment was dominant in the derivatives market as well, because ETH's taker buy/sell ratio turned red recently.
However, CryptoQuant's data revealed that ETH's stochastic was in the oversold zone. This can help increase buying pressure and in turn, push the token's price in the days to come.
How is BNB Chain doing?
BNB's state was also pretty similar to that of Ethereum as its value dropped. Over the last seven days, BNB Chain's price has fallen by more than 3%. At press time, it was trading at $205.39 with a market cap of $39.5 billion.
If market indicators are to be believed, BNB's price might go down further. Both the Relative Strength Index (RSI) and Money Flow Index (MFI) registered downticks. BNB's Chaikin Money Flow (CMF) was also hovering below the neutral zone. On top of that, the MACD displayed a clear bearish upper hand, further increasing the chances of a sustained downtrend.
Source: TradingView
However, unlike Ethereum, BNB's derivatives market stats seemed optimistic. For example, Coinglass's data pointed out that while BNB's price dropped, its funding rate also declined. This suggested that investors have been reluctant to buy BNB at a lower price. Additionally, a similar trend of decline was also noted in BNB's Open Interest, which suggested that there were chances of a trend reversal.
Source: Coinglass
Whales are interested in XRP
Amidst all this, XRP whales showed immense interest in the token. This was evident from the rise in its total number of whale transactions over the last few days. Additionally, its social volume also remained pretty high, reflecting its popularity in the crypto-market.
Source: Santiment
However, XRP was the most affected altcoin among the top three during the latest price correction as its value dropped by more than 8% in the last seven days. Thanks to the unprecedented price decline, XRP's 1-week price volatility shot up too.
At the time of writing, XRP was trading at $0.4772 with a market cap of more than $25.5 billion, along with a 7% fall in its daily trading volume. XRP's fate also looked similar to that of the other two, as its market indicators remained bearish. Its CMF and MFI both registered downticks and were resting near the neutral zone.
Source: TradingView
How much are 1,10,100 XRPs worth today
Considering the performances of all three top altcoins, it seems likely that all of them might see a further drop in their value. Therefore, the second possibility of expecting a re-test of the 2017 ATH seems pretty likely to happen.
However, as the crypto-market is infamous for its unpredictability, the way things go in the future will be intriguing to watch.
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