The cryptocurrency market has had a volatile week, with important developments affecting various coins. Red Coin (RWE) has reached unprecedented levels, while altcoins are showing signs of weakness after a bull year. The surge in hype around cryptocurrencies and the emergence of the Federal Open Market Committee have contributed to this volatility, leaving traders and investors in a state of emotional turmoil.
Let’s analyze the red crypto market.
Currency effect meme
In a recent podcast, Crypto Banter pointed out how meme coins are negatively impacting the cryptocurrency market. They have delayed the expected rise of altcoins by attracting investments away from real projects. This focus on memes has raised concerns about a potential scenario where the elimination of meme coins becomes critical to altcoins’ recovery. The analyst argues that removing meme coins is essential to allow projects with real-world applications to succeed in the market.
When to buy: Bitcoin or Altcoin?
The analyst recommended focusing on long-term portfolios and good entry points, highlighting the Bitcoin Rainbow Chart as a tool for identifying investment opportunities when the market is oversold. The chart categorizes market conditions, advising accumulation in light green areas, buying in blue areas, and identifying opportunities to sell at low prices in dark blue areas.
If Bitcoin collapses, altcoins may capitulate due to their dominance. The analyst is optimistic about Bitcoin in the long term despite the short-term volatility. Bitcoin’s dominance means that altcoins may suffer in the short term but quickly rebound when the market rebounds.
The analyst selects popular altcoins
Injection protocol (INJ)
Currently trading at around $20, INJ is facing significant downside pressure with further declines indicated as potential. Investors are advised to wait for clearer signs of market stability before considering entry points.
Phantom (FTM)
FTM settled near its support levels, indicating the possibility of another decline to around $0.55 to $0.50. This represents a cautious buying opportunity for those looking to accumulate at lower prices once market conditions stabilize.
X is immutable (IMX)
IMX remains stable at low levels amid the broader market decline. Accumulation strategies can be considered as IMX shows resilience, although ongoing market volatility affects sentiment.
Chain link (link)
LINK is currently losing support around $12, with potential buy areas identified at $12 and $10. Investors should watch closely for any signs of reversal or confirmation before entering into positions.
Dotted (DOT)
DOT is approaching critical support levels near $4.5, indicating a cautious outlook. We advise investors to be patient and wait for stronger signals in the market before considering new trades.
With the current uncertainty in the market, many are wondering what the future of cryptocurrencies is in 2024 and whether investing in altcoins is wise in the upcoming uptrend.