The crypto market has suffered a downturn for what is now the fourth consecutive day, despite incredibly positive developments such as the approval of the Spot Ethereum ETFs by the SEC on Thursday. Is this dip going to continue, or is a bounce now overdue?
Correction now over?
For investors and traders new to crypto, it must be difficult to get used to the ups and downs of what is quite a volatile market. However, what they need to know is that this is perfectly normal, and if the market were to go up with hardly any corrections, this would be extremely unhealthy.
The current correction for altcoins has been 8.4%, if this local bottom was indeed the bottom, and that is probably par for the course. To experience a fifth daily red candle in a row hasn’t been seen since October of last year, so the odds are that we may have seen the full extent of this dip.
Last test of support for altcoins?
Source: Coingecko/TradingView
On the daily chart for Total 3 (Combined market capitalization of all cryptocurrencies, excluding $BTC and $ETH) it can be noted that the price has so far held the $666 billion support level. After a successful breakout of the triangle, and confirmation above, this perhaps looks like what could be the final retest of this level.
USDT Dominance facing rejection
Source: Coingecko/TradingView
On the USDT Dominance chart, which could be taken as an inverse to the crypto market cap, looks as if it is being rejected from the 4.5% resistance level. These particular resistance levels were also strongly contested back in 2020, 2021, and 2022, so a rejection here could be quite likely.
$LINK – first of the altcoins to bounce
Source: Coingecko/TradingView
Among the individual altcoins, Chainlink $LINK is one of the first to make that bounce. It could be that as the oracle for the ethereum network altcoins, it is taking advantage of the Spot Ethereum ETF approval.
The price is up against resistance at $17.50, and there is good support below at $16.40. There could be some sideways price movement from here, unless of course $BTC decides to surge upwards again, likely taking the altcoin market with it.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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