Although bitcoin controls almost half of the total crypto market, altcoins also play a very important role in enhancing the market. Looking at the recent performance of some of the major altcoins, it appears that they have the potential to take the altcoin market cap (altcap) to higher levels.
Are altcoins worth it?
They are very. Lately, many altcoins have made significant gains in the past few days. The altcap has been rising steadily over the past 2 weeks and is currently at $ 1.055 trillion.
It’s not far from hitting its ATH of $ 1.35 trillion and the odds are good. If you watch the candlestick movement you can see how the altcap successfully retested the ATH in 2017.
In addition, altcoin market cap broke month-long weekly resistance and rose above April levels.
Going forward, there is very little chance of further resistance as it approaches its ATH (May Level). This is supported by the indicators Relative Strength Index (RSI) and Chaikin Money Flow (CMF). The RSI rates the total value of the asset and in the case of Altcap on the weekly chart, it is not yet in the overbought zone. This means that the Alt market still has some chance of rising.
Additionally on the daily chart CMF indicates enormous capital inflows into the market. This is a good sign for the market itself. But when it comes to which alt does best, there are some interesting observations.
What alts are up?
Overall, almost all coins are doing well thanks to the recent rally. But highlighting someone doesn’t do it justice. Aside from Ethereum, the coins that have cut off in the past few days are Cardano, Litecoin, and Polkadot.
Right now, ADA is up 10.99%, LTC is up 5.7%, and DOT is up 3.8%. However, looking at the past four days, ADA, LTC and DOT increased 37.5%, 21.74% and 12.52%, respectively.
In addition, on-chain data also shows its overall performance. In terms of transaction volume, ADA has a constant volume of $ 4 billion to $ 5 billion. LTC has a range of $ 1 billion to $ 4 billion, and every now and then increases.
In terms of daily active addresses, although ADA saw a slight decrease, addresses remain near the 70,000 range in most parts. LTC, on the other hand, has active addresses of around 300k and continues to rise. And while DOT doesn’t have that high number of addresses, they keep pace with the growing market with increasing addresses.
Based on participation and performance in the chain, it becomes clear how these alts support the market. Keep in mind, however, that the Altcap RSI, which extends into the overbought territory, could cause a trend reversal that brings values down.