Layer 1 altcoins experienced a significant correction in June, following Bitcoin’s decline to $60,000. This downturn was largely driven by Bitcoin miners selling off to cover operational costs and significant outflows from U.S.-based ETFs.
However, the selling pressure began to subside last week, allowing Bitcoin to recover from the $60k mark and enabling altcoins to establish local bottoms.
Moreover, a renowned trader CryptoDan noted a positive shift that could herald a bullish rally for the market in the third quarter of 2024. The recent X post highlighted,
“채굴자들의 매도 우려 해소, 3분기 상승 랠리 가능”
최근 암호화폐 시장을 하락시킨 고래 중 하나는 채굴자들로 볼 수 있습니다.
최근까지 시장은 채굴자들의 매도물량을 완벽히 소화하지 못하고 있었으나 아래 두 가지 근거로 채굴자들의 매도 압력이 매우 낮아졌다고 볼 수 있습니다.
1.… pic.twitter.com/OoRRfHRBMm
— Crypto Dan (@DanCoinInvestor) July 1, 2024
“The quantity of Bitcoin sent by miners to exchanges for sale has decreased significantly since May.”
“The volume of the OTC trading desk used by miners for selling purposes was piling up as they could not find a buyer until recently, but on June 29th, the volume of the OTC trading desk was all consumed. It’s highly likely that someone has shown up to buy their Bitcoin.”
Given these developments, here are some top Layer 1 cryptos investors might consider for potential gains in the upcoming post-correction rally.
Also Read: Altcoin News: Institutions Are Buying Solana, XRP, & 2 Other Altcoins
Layer 1 Altcoins -Solana (SOL)
Solana (SOL) is a high-performance blockchain designed to support decentralized applications (DApps) and cryptocurrencies.
Solana (SOL)| Tradingview
Over the past three months, the Solana price has been trading sideways within the formation of a symmetrical triangle pattern. The converging trendlines as dynamic resistance and supports carrying this consolidation until the SOL price is ready to break free.
Amid the market relief rally, the SOL Price rebounded from the lower trendline at $122 and surged 21.5% to trade at $148.2. This recovery was also bolstered by the recent S-1 filing from VanEck and 21Shares with the US SEC for a Solana ETF.
A potential breakout from the triangle pattern will accelerate the buying momentum and set Solana’s price to target the $210 mark, followed by $354.
Also Read: Could Solana Mimic Ethereum and Surge to $1,000? Analysts Weigh In
Cardano (ADA) is a proof-of-stake blockchain platform distinguished by its foundation in peer-reviewed research and development through evidence-based methods.
Cardano (ADA)| Tradingview
Under the influence of a falling wedge pattern, the ADA price has witnessed an aggressive correction in the last three months. The bearish turnaround has tumbled the asset from $0.81 to $0.357 registering a loss of 55.9%.
With the broader market experiencing an easing in supply pressure, the ADA price surged by 13% to reach $0.4, lifting the market cap to $14.4 billion. Buoyed by an intraday gain of 3.21%, buyers challenged the resistance trendline of the wedge pattern.
A potential breakout from this pattern could signal the end of the correction phase, enabling buyers to push the price past the $0.8 mark.
Also Read: Cardano’s Charles Hoskinson & Ex-Ripple Offer Fiery Critique On Biden’s Dementia
Avalanche (AVAX) is a high-performance blockchain platform that stands out for its unique architecture designed to address scalability and flexibility issues commonly associated with earlier blockchain generations.
Amid the ETF mania, rumors of a spot AVAX ETF have spread across the crypto market, positively impacting Avalanche’s coin value. On May 24th, AVAX rebounded from a support level of $23.5 and surged by 26.3% to reach $29.75. According to CoinMarketCap, Avalanche now holds a market cap of $11.73 billion, with a 24-hour trading volume fluctuating around $321.7 million.
The recent price movement marks a bullish breakout from the downsloping trendline of the falling wedge pattern. If this reversal setup proves accurate, the AVAX price could potentially rechallenge its previous high of $65.37.
Also Read: Avalanche Price Is On The Move; How High Can It Go?
Hedera (HBAR) is a public network that utilizes the unique hashgraph consensus algorithm, offering a novel alternative to traditional blockchain technology.
Hedera (HBAR)| Tradingview
Over the past two weeks, the HBAR price has been moving sideways, trying to hold above a multi-month support trendline at $0.073. The daily charts show lower price rejection candles, indicating increased demand at this support level, which bolsters the potential for a reversal.
By the press time, the Hedera coin shows a market of $2.73 Billion, while the trading volume jumped 63.75% since yesterday to reach $45.9 million.
If the market experiences renewed buying pressure, HBAR could breach the $0.085 resistance, signaling an early reversal. A successful breakout could further encourage buyers, with targets set at $0.12 and $0.14
Key Takeaway
The crypto market has seen a reduction in supply pressure as the volume of Bitcoin sent by miners to exchanges for sale has decreased. This shift has allowed altcoins to find suitable support levels and prepare for a bullish reversal. As the market enters a post-correction rally, Bitcoin price eyes for a new high, offering fresh long opportunities in prominent layer 1 altcoins.
Frequently Asked Questions (FAQs)
A falling wedge pattern is a bullish technical chart pattern characterized by converging downward trendlines. It signals a potential reversal when the price breaks above the upper trendline.
Bitcoin miner capitulation occurs when miners sell off their Bitcoin holdings, typically due to unprofitability. This can increase supply and drive down prices, but its reduction can ease supply pressure and support market recovery.
A Layer 1 coin is a cryptocurrency that operates on its own blockchain. Examples include Bitcoin, Ethereum, and Solana. These platforms provide the foundational infrastructure for processing transactions and deploying decentralized applications.
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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
