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If Bitcoin's dominance decreases, ETH and ADA might lead the rise of altcoins. The broader market is optimistic about these two cryptocurrencies.
Despite recent price increases, cryptocurrency analyst Dan Gambardello suggests that Ethereum (ETH) and Cardano (ADA) have yet to take significant action to confirm the anticipated altcoin season. Gambardello mentioned this during a YouTube meeting with subscribers on February 19.
According to him, Bitcoin's dominance is still high. Therefore, when the altcoin season arrives in full swing, the impressive performance of many altcoins may just be a hint.
It all depends on these two
For those unfamiliar with market dynamics, the altcoin season is a cryptocurrency term referring to a phase in the market boom cycle where the performance of alternative cryptocurrencies surpasses that of Bitcoin. Historical data shows that prosperity begins when capital first flows into ETH.
In the previous bull market cycle, ETH led the way, accompanied by ADA's breakthrough. This time, it might not be any different. However, from the perspective of Bitcoin's dominance, it hasn't opened the door for ETH yet. AMBCrypto analyzed CoinStats data and found that despite dropping below 49% earlier, Bitcoin's dominance has risen to 49.4%.
However, being below 50% might provide an opportunity for ADA and ETH to dominate the market. Nevertheless, this alone might not be enough to usher in an altcoin season. Therefore, an assessment of the market sentiment surrounding these cryptocurrencies was conducted.
Market participants focus on ADA and ETH
According to results from Santiment, ADA's weighted sentiment is 0.918. On the other hand, ETH also has a positive weighted sentiment, standing at 0.918 at the time of writing. This metric reflects the average market participant's view of a project.
Therefore, these data suggest that the majority of traders are bullish on the Ethereum and Cardano ecosystems. If this sentiment remains unchanged, there might be buying pressure in the cryptocurrency market.
If so, the price of ADA could approach $1. Additionally, the price prediction for ETH might surpass $3,000.
In terms of trading volume, on-chain data shows ADA has increased to $6.8507 billion. The rise in volume indicates growing interest in ADA, which has translated into a surge in buying and selling. ETH's trading volume follows a similar trend.
Whether or not this materializes, here are ADA's and ETH's market values:
At the time of writing, Ethereum's trading volume is $156.2 billion. When correlated with the price, volume could push upward. If ADA's volume continues to rise with the price, it could overcome resistance. Furthermore, if interest in cryptocurrencies continues to rise, ETH could climb to $3,500. If ADA reaches $0.90 and ETH reaches $3,500, prices for other altcoins might also rise. |
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Post time 27-2-2024 20:44:08