Altcoin Market May Start to Recover, But the Momentum Has Slowed Down in the Past Few Days

Many altcoins have made significant gains in the past week. However, the momentum has slowed down in the past few days. However, analysts are predicting

Many altcoins have shown significant gains over the past week. However, the momentum has slowed considerably over the past few days. Nevertheless, analysts are predicting that the market may begin to recover.

An analysis by Alphractal suggests that there could be major fluctuations in the altcoin market soon.

Altcoin Performances and Relationship with Bitcoin

The analysis, published by Alphractal on the X platform, was conducted using the Correlation Heatmap. This tool is an effective method for analyzing the price movements of altcoins in relation to Bitcoin. According to the Correlation Heatmap, when the values are close to 1, altcoins follow Bitcoin closely. However, when the values are zero or negative, altcoins move independently.

The analysis shows that the correlation is currently heading towards negative territory. This indicates that the market may become volatile again. In such a scenario, altcoins will move independently of Bitcoin, which will create both opportunities and risks for investors.

Solana and Binance Coin: Roadmap

Solana’s current status aligns with the high volatility predicted by the analysis. According to Santiment data, Solana’s Weighted Sentiment has increased sharply, indicating rising investor confidence in the token. Furthermore, Solana’s Open Interest has reached a new all-time high, increasing the likelihood that the current price trend will continue.

On the other hand, Binance Coin (BNB) followed a different path last week. BNB’s Weighted Sentiment fell as it entered a consolidation period. This means that investor confidence is weakening. However, the decline in BNB’s Open Positions signals a possible uptrend reversal. Nevertheless, it is difficult to make a definitive prediction as the MACD indicator is showing a potential bearish signal.

Technical Advantages of Solana

Solana is promising with its technical indicators. MACD clearly shows a bullish advantage. In addition, Solana’s Money Flow Index (MFI) reached 71 and continues its upward movement. This shows that Solana’s high volatility is likely to continue. The altcoin market should be watched carefully in the coming days.

These differences between Solana and Binance Coin once again reveal how dynamic the altcoin market is. As we reported at Kriptokoin.com, investors should also consider risks while looking for potential earning opportunities with increasing volatility. Market movements should be followed carefully, especially with the support of technical indicators. Therefore, it is of great importance for investors to closely monitor market trends. In particular, being prepared for sudden price movements plays a decisive role in making strategic decisions.

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