The bitcoin and altcoin market has consolidated recently after gaining support from growing institutional interest. With Bitcoin comfortably settling above the $30,000 level, the attention is on altcoins. Specifically, it has shifted to their potential to attract capital inflows and challenge Bitcoin’s dominance. Let’s look at the details
Is altcoin season coming?
Some crypto analysts suggest that technical indicators point to an imminent altcoin exit. For example, on July 9, crypto analyst Mustache, also known as el_crypto_prof, tweeted that altcoins have significant “breakout potential” right now. The analyst pointed out that the current market situation is similar to the previous cycle. According to the analysis, the current altcoin market cap retested the values that acted as anchors during the 2021 bull run. “If you ask me, altcoins have an absolute “breakout potential”. The similarities with the last cycle are impressive, aren’t they?” makes the comment.
Similarly, another analyst named CryptoFaibik has suggested that an altcoin rally is coming, based on historical Bitcoin dominance. In this case, the analysis suggested that dominance is likely shrinking, indicating that investors are depositing money in altcoins.
Which altcoin group is collected?
At this point, the first altcoin Dogecoin takes place. Meme coin has maintained a stable position, showing flexibility in the face of stagnant valuation in line with general market trends. However, there has been a remarkable event for Dogecoin (DOGE) in recent weeks. It fluctuated briefly, surpassing the $0.07 milestone for the first time in four weeks. This surge came just after the biggest shorting of digital asset witnessed in 2023. Despite this positive development, the controversy and general interest surrounding DOGE remained relatively low. Santiment, a crypto and blockchain analytics platform, reported this on July 4.
Considering past examples where Dogecoin garnered increased attention leading to significant rallies in 2021, investors are hoping to leverage factors such as improved network development to propel DOGE to new heights in case of altcoin season. At the time of writing, DOGE is trading at $0.065. Accordingly, it means a loss of over 2% on a weekly basis.
Buy Litecoin (LTC)?
Litecoin (LTC) has experienced a series of fluctuations in price action over the past weeks. It also created a mix of ups and downs. In particular, the asset has garnered attention in anticipation of the halving event. Accordingly, LTC has set its sights on the key $100 resistance zone. As the event approaches, there have been significant changes in Litecoin’s on-chain metrics. Accordingly, this indicates the possibility of an impending rally. As reported by Santiment in early July, the steady increase in the number of millionaire addresses for Litecoin is a remarkable development. This adds to the increased anticipation surrounding the halving event.
The 2023 Litecoin halving is set to reduce the block reward from 12.5 LTC to 6.25 LTC. Such scarcity-driven mechanisms often generate increased investor interest. On the other hand, it triggers significant price movements. Simultaneously, LTC is showing increasing adoption in a variety of use cases, primarily payments. In particular, altcoin Litecoin surpassed Bitcoin in June. Accordingly, it has become the most used digital payment asset on BitPay. Also, Litecoin has made significant initiatives towards smart contracts through the Ordinals Inscriptions in the protocol. Accordingly, recent developments pointed to a significant change in its functionality.
Polygon (MATIC)
Altcoin Polygon (MATIC) suffered a decline in value after the Securities Exchange Commission (SEC) classified the token as a security. Since then, the token has struggled to recover from the impact of this news. Despite the setback caused by the SEC’s classification, MATIC is relying on its strong fundamentals to recover its price. For example, in early July, Polygon’s price broke above the key $0.70 resistance level for the first time since the lawsuit.
cryptocoin.com Overall, although the price of altcoin MATIC has not yet fully recovered, the Polygon Network has witnessed a surge in user engagement throughout the week. For example, the number of MATIC daily active addresses (7 days) gradually increased from 1.3 million users on June 27 to 1.34 million active users as of July 6.
This increase in demand from Polygon users has shown a result. MATIC kept its bullish outlook for most of the week, having a positive impact on its price. At the time of writing, altcoin MATIC was trading at $0.70.
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