The crypto market experienced a significant downtrend recently, as the Bitcoin price fell below $100,000. Although BTC has recovered from that dip, the impact of the downfall is still visible in the remaining cryptos. However, altcoins like XRP, Chainlink, and Solana price recoveries defy the odds, and here is why.
Crypto Market Downtrend or Altcoin Season?
Despite the crypto market downtrend, Cole Garner’s analysis presents a new insight into the altcoin season. According to Cole, altcoins’ correlation to BTC has hit its lowest point in 12 months, which happens during the bull cycle resets. This paves the way for altcoins to move independently from Bitcoin’s price movements. Eventually, this indicates more recoveries and an upcoming altcoins rally.
More importantly, he claimed that the major correction and reset could happen within the next 1-2 weeks. At the same time, another analyst presented the possibility of altcoin setting their dominance near Trump’s inauguration, as Bitcoin would face a 20-25% correction, giving the perfect BTC buying opportunity at a low. Additionally, this will present the space and opportunity for altcoins like Ethereum and Solana price to rally.
Although the Bitcoin price consolidation heavily impacted the altcoin, XRP, Chainlink, and Solana prices have made impressive recoveries since the drop. This has increased the altcoin season’s expectations for users who feared the ASI drop from 65 to 53, as closer to 50 decreases the chances of the altcoin’s domination.
What’s Behind XRP, Chainlink, and Solana Price Recovery?
Ever since the drop, XRP has shown the biggest recovery, rising almost 8% on the charts. With that, it is currently trading at $2.41 after regaining strength, with the trading volume surging 34% to $23.15B. Moreover, the technical charts indicate buyer dominance, fueling the early recovery of the XRP amid the crypto market crash. Interestingly, the same is true with Chainlink, currently trading at $25.28 after a 4.3% surge from the drop, as there is buyer dominance, with trading volume rising 48% to $2.18B.
That’s because Chainlink’s recent performance boosted its demand, where the analysts believe the LINK price could hit $30 over the holidays.
Lastly, the Solana price has jumped 2.68% from $200 to $210 in the buyer’s presence, leading to TV rising 6% to $7.12B. It can go even higher with the building anticipation around the altcoin season, as the correlation heatmap charts showcase a decoupling trend, which means that Solana and the rest of the altcoins are moving independently of the Bitcoin price action. Additionally, the surge in TVs of all three assets confirms the investors’ shifting interest to high-potential tokens as the market restructures.
What’s Next?
The investors were already prepared for the Bitcoin price consolidation if the FEDs implemented a 25bps rate cut. Moments after the announcement, the crypto market downtrend began. However, at the same time, it revealed the timeline for the altcoins season as altcoins’ correlation to BTC hit a 12-month low, which is an indication of the bull cycle reset. The crypto analyst, Cole Garner, has concluded that this shift will be visible in the next 1-2 weeks.
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