Altcoin Market Is Heating Up According To This Signal, Analysts Say
The dormant altcoin market is showing signs of recovery. Stock Money Lizards tell you why in some exclusive charts provided to CryptosRus.
Covered:
- Altcoin Market 2022
- Charts Indicating Altcoins Heating Up
Altcoin Market 2022
After promises of an altseason, the altcoin market was hit hard in 2022. This year has seen massive dips from many of the top performers in alts like Ethereum, Solana, Polkadot, and many more.
There’s a lot of blame to go around for that. The Terra Luna collapse, Three Arrows Capital domino, and the bankrupcty of Celsius and Voyager, all combined to scare people out of the market entirely. Some believe altcoins are just hype, but there is something to be said about the excitement many of the projects generate thanks to their innovations — and the resultant increases in market cap.
Of late, a few altcoins have started performing better thanks to strong catalysts like Ethereum and Cardano. However, considering Ethereum is barely an altcoin — and should be graduated by now — and Cardano’s Vasil catalyst won’t last forever, what’s the next thing that will get the entire market started?
Or, is that the wrong question to ask?
Charts Indicating Altcoins Heating Up
Stock Money Lizards are looking at it another way. According to the popular crypto and stock analysts, the altcoin market is performing like it always does. “The altcoin market also runs in cycles. Boom and bust,” Stock Money Lizards said, comparing altcoins to investment markets in general.
“The equivalent to the MA 200 (weekly) in Altcoins is the weekly EMA 250. We
get a good impression here, where there is an oversold period. Since 2019, we
always saw a short dip below that EMA 250 that was recovered very quickly,” Stock Money Lizards said, before adding, ” The current dip is very similar to the 2019 dip. The COVID Dip is somewhat special since recovery was extraordinarily quick.”
More specifically, Stock Money Lizards believe the altcoin market is currently in price discovery: “After this short dip, we see a short period where the support is tested – this is
where we are now. Interestingly, we also see the log MACD signal line crossing
(weekly) – this is a bullish signal.”
Though, the analysts also caution that, “The macroeconomic situation remains tense – this is why we believe that the sideways movement could continue for some more weeks before we see a bull run.”
However, the sideways action is healthy because as we saw with the previous bull run for altcoins, the market needs a ramping-up period. “After a base with ABC pattern follows the formation of a bottom. Subsequently, we saw or will probably see a bull run. The whole thing is underpinned here by the True Strength Index,” Stock Money Lizards said.
So, as the charts point out, what’s happening is natural, but there are also other reasons for hope. As the interest in the altcoin market is also based also on innovations in the industry like with NFTs, DeFi, and metaverse, it’s likely that the altcoin market repeats itself. Especially considering all the development that’s going on in Ethereum, Cardano, and Solana, among others.
Recommended: Ethereum Whales Are Preying On These Two Surprising Altcoins
For more of Stock Money Lizards, check out their official site and Twitter.
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Text source: CryptosRus
