Wells is preparing for the next altcoin rally – CryptoQuant founder
CryptoQuant founder Ki Young Joo believes that crypto-wells are positioning themselves in anticipation of the next altcoin rally, with traders keenly debating when the alt season begins.
Ju's analysis focused on the 1-year cumulative bid/ask spread for Altcoins, which is a measure of the difference between buy and sell over a one-year period.
The analyst suggests that whales choose limit orders to avoid slippage, and that the increasing level of the measure will lead to an increase in the number of buy limit orders among large crypto investors and institutions, which will represent “strong buying walls” for future demand for altcoins.
Not all altcoins are ready to capitalize
Some altcoins such as CryproQuant founder Solana (SOL), Polygon (MATIC), Cardano (ADA), Cosmos (ATOM), PancakeSwap (CAKE), My Neighbor Alice (ALICE), Ampera (AMP), Ankr Protocol (ANKR) And the Chile Token (CHZ)? They are poised to benefit from increased futures purchase orders.
Related: Price Analysis 7/29: SPX, DXY, BTC, ETH, SOL, BNB, XRP, DOGE, TON, ADA
On the contrary, tokens such as XRP (XRP), Chainlink (LINK), Binance token (BNB), Compound Finance (COMP), Bankor Network (BNT) and Lending Protocol Aave (AAVE) are currently seeing deficits in future numbers. Buy orders.
Is it time for altcoin season?
Crypto analyst Jamie Coates recently shared a confirming altcoin market forecast. The analyst cited the top 200 equal weight index as evidence that we have reached a market level, indicating a possible rally in altcoins.
The Top 200 Equal Weight Index tracks the price performance of 200 altcoins by market capitalization and compares them to the price performance of Bitcoin (BTC). A lower numerical reading from this metric indicates that only a few altcoins outperform Bitcoin by percentage, while a higher reading indicates that many altcoins outperform Bitcoin by percentage. At the time Coutts made his prediction, the benchmark was between 10-20 percent.
Recently, famous crypto trader “Mags” said that the altcoin market is currently in a rallying phase. The trader argued that altcoins are up only 58% on average after breaking out of a long rally, suggesting that the digital assets are experiencing relatively small returns before posting big gains.
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