- Bitcoin has dug in its heels in the $30-$40k price band
- Altcoins are also following Bitcoin bearish path
- Altcoin prices mirror BTC sentiments
Bitcoin is quiet in the crypto market, and it seems it has dug in its heels in the $30-$40k price band. Meanwhile, other players in the cryptocurrency arena, like Cardano, Litecoin, and XRP, had all set off towards their independent rallies. They are also following the number one crypto coin.
Three altcoins have the highest correlation with Bitcoin
Three altcoins apart from Ethereum have the highest correlation with Bitcoin around the 0.8 range. The three altcoins are LTC, ADA, and XRP. The three altcoins are all trading in Green and have registered an upward movement of 1% in the last 24 hours.
Bitcoin fortunes were the same too. So setting aside the correlation with BTC aside it is essential to decipher the trends set by different market entities to understand where these coins are heading.
It has been four weeks, and the transactional values of the three altcoins have been tanking continuously. There was a momentary flash of brilliance when there was a slight surge midway. However, it could not be sustained for long. On June 14, the trading volume for ADA was $2.38 billion, LTC $2.35 billion, and XRP $3.29 billion. On July 14, the trading volume for ADA was $1.64 billion, LTC $ 1.5 billion, and XRP $1.94 billion.
The chart reveals that such low figures were witnessed only in September last year. Therefore, the trading volume must pick up at this point. Only then can a potential rally be expected.
Over the same one-month period, the development activities of the XRP have risen considerably despite slight hiccups at different points. However, it did not have any impact on the token’s prices. On the other hand, development activities on Cardano and Litecoin platforms have not been steady. Still, their values did not tank either.
Altcoins have no relation with the developmental activities on their platform.
Hence it is crystal clear that the price actions of these altcoins have no relation with the happenings in their respective ecosystems. This view does not have much weight that altcoins are affected by development activities on their platforms. In the present time, most altcoins follow BTC’s bearish footsteps.
The prominent market players are also not acting as a life jacket for the altcoins. For example, on July 14, only 408 large LTC transactions (>100k USD) took place, while in the last days of June, the figure was 1500 benchmark on an average. The VRP situation is also the same, and in July 14527, whale transactions took place while the figure was close to 1000 at the end of June.
Large holders hold Cardano concentration
IntoTheBlock’s data reveals that large holders hold Cardano concentration. This indicator is based upon an aggregate percentage of circulating supply held by whales (addresses holding over 1% of supply) and investors (addresses containing between 0.1%-1%). The two are added together to give the total concentration by large holders.
ADA’s concentration grabbed by large HODLers amounted to 23.37%, but all futile
For the altcoins to do well, they require the proverbial nudge, which only Bitcoin can provide. As soon as BTC prices start surging, the surge will reflect upon the altcoins and mirror the BTC movement. First, however, these big entities will have to step in and help the altcoins price get momentum for the time being.