- Bitcoin’s dominance at 54% suggests altcoins are subdued; bearish divergence on RSI may signal a market shift.
- Solana’s recent 10% value drop contrasts with potential market changes; Open Interest decline hints at upcoming reversal.
Bitcoin’s dominance on the cryptocurrency market has been a significant factor in the performance of altcoins, with BTC’s dominance currently standing at 54% according to CoinStats.
This level of market control usually suggests a subdued period for altcoins. However, emerging patterns on the dominance charts hint at potential shifts that could benefit cryptocurrencies like Solana (SOL).
Bullish Divergence at the Bottom — Bearish Divergence at the Top
We’re so damn close to #Altseason…
Just a little more patience and we'll see fireworks 🚀 pic.twitter.com/U32taAofQ7— CryptoBullet (@CryptoBullet1) August 30, 2024
Recent analyses, including insights from CryptoBullet, a noted crypto analyst, reveal a bearish divergence on Bitcoin’s dominance chart, particularly on the Relative Strength Index (RSI). This divergence, where the RSI shows weakening momentum despite the dominance metric increasing, could signal a forthcoming decrease in Bitcoin’s market control.
Historically, such patterns have led to changes in the Crypto market. For instance, a similar bearish divergence in late 2021 preceded a rise in BTC dominance, but the current indicators suggest a possible reversal that might usher in what many in the crypto community refer to as an ‘altcoin summer.’
Turning to Solana, the cryptocurrency recently experienced a 10% drop in value over the last week, trading at $138.57 with a market capitalization of over $64 billion. Despite this downturn, the decrease in SOL’s Open Interest indicates a potential shift in the ongoing price trend, hinting that a reversal might be on the horizon.
Technical indicators on Solana’s daily chart show mixed signals. The Money Flow Index (MFI) has recorded a downtick, suggesting continued price drops might be likely, potentially seeing SOL fall to around $127.
Conversely, the Chaikin Money Flow (CMF) indicator has moved upward, reflecting growing buying pressure which, combined with a decrease in BTC dominance, could set the stage for a bullish rally for SOL.
If Bitcoin’s dominance continues to falter, Solana could leverage this shift to initiate a recovery and potential rally. ETHNews analyst places a near-term target for SOL at $163, with the possibility of reaching as high as $187 if the altcoin market heats up.
The current price of Solana (SOL) is approximately $135.95 USD, showing a decrease of 2.75% over the past 24 hours. Today’s trading range has been between $135.95 and $138.96 USD.
Over the last 52 weeks, Solana’s price has ranged from $17.46 to $209.70 USD. The market capitalization stands at $63.413 billion, with a trading volume of around $2.05 billion in the last 24 hours.
