The prospects of the Altcoin season are renewed by these 3 leading Altcoins

A few days ago, only six out of 50 altcoins outperformed Bitcoin (BTC). But today, that has changed, fueling new speculation in the altcoin era.

The interesting part of this development is that not only are three new cryptocurrencies added, but the new entrants are all in the top ten of their market value. They include Solana (SOL), Ethereum (ETH) and Ripple (XRP).

Is Diverging into Altcoins High Risk, High Reward?

It is important to note that the altcoin season begins when at least 75% of non-Bitcoin cryptos outperform BTC. Only nine are still doing that, which means that the altcoins' dominance period is yet to be confirmed.

As mentioned above, the performance of SOL, ETH and XRP will increase the confidence of the market. Glassnode founders Jan Happel, Rafael Schultze-Kraft and Yann Allemann echo this statement.

The founders of the on-chain analytics platform, using their collective X token, Negentropic, have indicated that the flow of capital into riskier assets may soon begin in the crypto market.

First, they compared changes in the traditional market and used that as an indicator for possible changes in the crypto market.

“Will we see if this is BTC and Alts? Well – we had it like yesterday in November 2020. IWM went up and continued for the following months. Total 3 rallied by ~400% in 4 months. This was the starting signal for the strongest Alt-rally segment for the next 4 months. Will we see the same thing again in the Alts? We think it might be!

Additionally, Solana, Ripple and Ethereum's entry into the fold can be linked to their price action.

In the last seven days, the price of SOL has increased by 9.31%, ETH has increased by 9.56%, and XRP has made a surprising gain with an impressive increase of 21.97%.

Here's how cryptos are doing as the much-anticipated altcoin season approaches.

Solana (SOL) eyes higher prices after a 9% increase

The current SOL/USD daily chart shows that the altcoin has formed a symmetrical triangle. This chart pattern is characterized by combining trends that connect successive lower highs and higher lows.

The lower highs act as resistance, and the higher lows act as support. Also, SOL price is looking to enter the triangle. If this happens, Solana will be out of the consolidation phase and headed for a major breakout.

Furthermore, the Fibonacci Retracement indicator shows potential resistance and support points for the signal. As shown in the chart below, SOL may rise to $162.79 in the coming days.

Read more: What is Altcoin Season? General guidance

This is 0.618 Fibonacci areas. If successful, this could push the altcoin's price towards $174.59 to retest. However, in the case of refunds, the SOL price may return to $135.97.

Ethereum (ETH) breaches key resistance, set at $3,622.

At press time, ETH is trading at $3,360. The price is also trading above the 20-day EMA (blue). EMA is an acronym for Exponential Moving Average, and it measures changes in price direction over a period of time.

If the EMA is above the price, it means that the trend is weak. But since ETH is changing hands above the 20 EMA, it indicates that the trend is bearish. Additionally, the Relative Strength Index (RSI) supports this bias.

RSI measures momentum, and since it is above the neutral line, it means bulls dominate ETH's movement. Evidence of this is that it has crossed resistance at $3,255 and resistance at $2,946.

If the momentum remains aggressive and the chant around the launch of the Ethereum ETF continues, the price could reach $3,622. However, if selling pressure comes into play, the price of ETH may drop to $3132.

Ripple (XRP) breaks out of descending channel.

Initially, XRP experienced a multi-month descending channel, with downward trends connecting lower highs and lower lows. However, analysis shows that the altcoin will explode and increase by $0.42 after buying interest. This later caused the token to rise to $0.53.

In the press release, the Money Flow Index (MFI) shows that there is a high demand for XRP. As such, it is not out of place to expect a price increase to $0.55. If successful, the price of XRP could reach $0.57.

Read more: 11 Cryptos to Add to Your Portfolio Ahead of Altcoin Season

However, $0.57 is critical to the cause, especially at this point it has been rejected many times. If the bulls break the resistance, Ripple can look towards $0.60. However, another rejection at this point could force the price back to $0.52.

Overall, the altcoin season for this cycle seems to be getting closer by the day. However, traders in the market should take a look at Bitcoin considering that it was able to return to $62,000.

If the price of BTC continues to rise and the dominance of Bitcoin jumps, this increase in the price of altcoins will not be worth it.