Into The Cryptoverse’s CEO and co-founder, Benjamin Cowen, made a prediction on Twitter earlier today regarding the future of altcoins. According to Cowen, the “altcoin reckoning” is not yet over. This reckoning refers to the drastic devaluation of altcoins against Bitcoin (BTC), the leading cryptocurrency. Cowen speculates that altcoins may still see a 40%-50% decrease compared to Bitcoin.
Cowen’s Prediction
“Altcoins are still likely to drop 40-50% against #BTC before the altcoin reckoning ends.”
The recent news about the SEC’s case against Ripple and the fact that Bitcoin’s dominance has managed to stay at around 49% underscores this prediction.
“It’s not about the intrinsic value of the currencies, but more about the liquidity, which continues to decline,” Cowen added. pic.twitter.com/MDftLsVav8
— Benjamin Cowen (@intocryptoverse) July 23, 2023
Bitcoin’s Current Market Dominance
Based on data provided by CoinMarketCap, Bitcoin’s current market dominance is 48.54%. This shows a 0.27% increase over the past day of trading, which may appear insignificant but could indicate a trend towards a renewed faith in Bitcoin over altcoins.
Performance Of Top 10 Altcoins
Taking a closer look at the top 10 altcoins by market cap, a clear pattern of decreasing price can be seen:
- Ethereum (ETH), the largest altcoin by market cap, has seen a decrease of 0.96% in the past 24 hours, currently trading at $1,874.28.
- Ripple (XRP) lost more than 3% of its value over the past 24 hours, currently priced at about $0.7414.
- Solana (SOL) has also seen a more than 3% decrease in its price within the past 24 hours, now valued at $24.74.
- Even Dogecoin (DOGE) – a meme coin whose weekly performance showed a 1.68% increase – saw its price drop by 0.60% within the past 24 hours.
Daily chart for the total altcoin market cap (Source: TradingView)
The Future Of The Altcoin Market Cap
The total altcoin market cap is currently at a critical point, resting on the crucial support level at $575.048 billion. This is also the same value as the 20-day EMA line. Yesterday, it failed to maintain above the 9-day EMA line, causing some concern among investors.
Should we see a daily close today below the $575.048 billion support, negative consequences for the altcoin market cap could come into play:
- The total altcoin market cap could drop below a positive trend line that had been forming over the past few weeks.
- This might put the total at risk of dropping further to the next support level, estimated at $551.698 billion, in the following week.
However, the total altcoin market cap might take a different path. With two consecutive daily closes above $575.048 billion, the cap could see a rise to $602.476 billion. Continual bullish momentum would also help turn the $602.476 resistance into support, allowing for more substantial growth.
Disclaimer: The views and opinions expressed in this price analysis, as well as all the information shared, are published in good faith. Readers must conduct their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
