Altcoin
Altcoin dominance at 9% drops 15% in 30 days: now what?
- Altcoin dominance has decreased by 15% in the last month.
- Demand for ETH has remained significantly low, putting the altcoin at risk of further price declines.
Altcoin dominance has fallen by double digits over the past month. At the time of writing this article it was at 9.88%, but in the last 30 days it has fallen by 15%. TradingView.
Altcoin dominance refers to the relative market share of all cryptocurrencies, excluding Bitcoin [BTC]. Its decline means that the total market capitalization held by altcoins was decreasing relative to BTC.
This may be because investors are shifting their funds from altcoins to BTC, which they perceive as a safer and more stable investment asset.
Is Altcoin Dominance Declining?
In times of market consolidation like this, the dominance of altcoins may decline while that of Bitcoin increases, as altcoins lose value or fail to attract investors.
However, BTC’s dominance has not yet seen any significant growth this month. At the time of writing, its value stood at 55.36%, down 1.03% over the past month and 0.69% over the past seven days.
AMBCrypto reported First this gradual decline in BTC’s dominance is due to the strong resistance the coin faces at the $70,000 price level.
ETH remains at risk of decline
At press time, Ethereum [ETH] trading at $3,561. Second CoinMarketCapthe value of the altcoin has increased by 14% in the last 30 days, despite the overall decline in the altcoin’s dominance in the cryptocurrency market.
An evaluation of the coin’s performance on a daily chart revealed that it broke below the $3693 support level on June 10 and has since turned it into resistance.
Even though it only managed to increase the price by 1% over the past week, ETH price has been fluctuating within a range, with new resistance formed at the $3693 price level and support found at $3428 .
Confirming ETH’s general decline among market participants, its key momentum indicators were positioned below their respective center lines at the time of writing.
For example, ETH’s Relative Strength Index (RSI) was 48.60, while its Money Flow Index (MFI) was 29.59.
Source: TradingView
These indicators measure oversold and overbought market conditions by monitoring the price changes of an asset.
At their values as of this writing, they suggested that selling pressure was significantly higher than buying activity.
Light That of Ethereum [ETH] Price forecast 2024-2025
If the decline continues, ETH risks falling to $3,496.
Source: TradingView
However, if invalidated, its price could rise towards $3,658.