Altcoins are in Hibernation, when is the market waking UP?

Altcoins are in Hibernation, when is the market waking UP?

Written by: Michaël van de Poppe

The entire market is awaiting a result on the ETF approval for Bitcoin. However, something that's not being discussed as much, but the markets are also waiting for a confirmation of the futures application for Ethereum. Many parties have applied for that and all are lining up for approval in the coming 1-2 months, so this entire period of boredom isn't going to sustain.

What altcoins are actually waking up and what can we see on the markets for a potential move from here? Let's have an update. First, we'll have the outlook on the Bitcoin dominance.

To me, it doesn't say many new things after this week. In last week's update I've mentioned a case that we're looking at consolidation for now, but most likely we're monitoring a case where the Bitcoin dominance is going to top out, just like it has been doing in the previous cycle.

Theoretically speaking, that's still the case and based on the current weekly candle, we can confirm that there's a high chance of downwards momentum on the Bitcoin dominance in the upcoming weeks. Does that mean we'll see Ethereum surge significantly? The bollinger bands on the weekly timeframe on ETH/USDT haven't been this tight since the past years, so a big move is definitely on the horizon and you better want to catch that one.

The total market capitalization for crypto is consolidating, which provides another inside week. Last week I've stated that there's a significant chance for another bull breakout if the markets are able to provide support at the 200-Week MA and SMA.

The chances have increased that this is the case. Of course, there's a bear market theory that we'll face a recession. However, the hiking policy gets towards the end stages at this point, while in the meantime stocks are around all-time highs and people are eager to find reasons to sell their positions as this entire rally has been happening without anyone seeing it coming. Another reason to argue that you shouldn't be thinking of what the mass suspects, but what is the opposite of that.

In that case, we can see that we're having argumentation all around social media suggesting that we must retest the area at $12K, but most likely that's not going to happen. Why would we if the markets are providing a Bitcoin ETF or Ethereum futures trading?

Let's have a look at some altcoins in this update, as some have been moving and some have been granting some interesting entry points. Let's start with Ripple (XRP).

XRP has seen a tremendous run due to the legal case against the SEC of whether XRP is a security or not. That big run caused a lot of traders to be selling their positions, as people have been waiting for this run for more than one year and wanted to get out, to make sure that they're not bag holding the position for longer. You should realize that the markets are still mostly in fear, even though breakouts do take place. People don't believe that we're in a bull cycle, until we clearly break ATH's for Bitcoin.

That's just the way it is.

For XRP, it's a good chance that we'll be hitting some entry points relatively soon and I'be a happy buyer if that opportunity arises on the markets.

That automatically opens the doors for Dogecoin to potentially surge from here, as that one is heavily correlated towards XRP and didn't have a move at all. Additionally, Shiba Inu is also approaching a big event with Shibarium, which means that we'll most likely have some surges there too. Meme season approaching?

Shiba Inu is currently trending upwards as we can see the current strength in the markets. That means that we'll be seeing constant Support/Resistance flips for continuation here. Until proven otherwise, the chances of continuation are evident. This means that we'll most likely see a continuation of the surge towards the next resistance zone.

My personal resistance zone is found at the area marked 'red' in this chart. Personally, I'd be looking to take profits there and continue to buy the dip until proven otherwise.

On the other hand, if Shiba Inu is going to continue moving upwards, then I'm heavily interested into other memecoins as well. That means that I'll be focused on PEPE and DOGE.

Dogecoin is currently following suit on Shiba Inu, through which we can see that we're flipping crucial levels for continuation here. That's an uptrend and you'll be buying the dip until it stops.

As long as Dogecoin sustains above the area of $0.07, I'd preferably want to be interested in buying this asset towards the resistance zone at $0.091-0.095Additionally, the new DOGE of this cycle is PEPE. It does look good, but based on the daily timeframe, would you be a buyer in this pack? I don't think so.

You'd preferably want to see a reclaim taking place here above the area of 131 sats, if that happens, then we'll most likely see a continuation towards the new highs. If it doesn't happen, then I'm a happy buyer in the green zone.

It might be boring, but the opportunities are everywhere. Make use of that. See you next week!