The cryptocurrency market is witnessing an increase in altcoin activity, with many altcoins are experiencing significant price rises. This upward trend had sparked speculation about a potential repeat of the historic rally witnessed in 2021, when altcoin valuations soared to record highs.
A recent analysis from crypto analyst Doctor Profit has garnered attention, suggesting an imminent surge for altcoins. The crux of his analysis hinges on the 50-day Exponential Moving Average (EMA50), an indicator that historically signifies whether altcoins are navigating a bullish or bearish phase.
The analyst observes that the 2021 bull run lasted 47 weeks before experiencing a significant downturn, causing altcoin prices to dip under the 50-day exponential moving average. However, the market swiftly recovered, crossing back above this indicator in June 2021, subsequently reaching new record highs.
The current market scenario shows a comparable trajectory, wherein altcoins are following the exponential moving average over a span of twenty-four weeks, lacking a substantial correction, suggesting that the market could be gearing up for even higher targets in the coming months.
The EMA50 is a widely utilized technical indicator that prioritizes recent price movements and promptly responding to market shifts. When an altcoin’s price trades above this indicator, bulls tend to take control. The EMA50’s sensitivity to short-term fluctuations makes it a preferred tool for crypto traders operating in volatile conditions.
Altcoins Market Trends
Although most altcoins faced declines amid the overall downward trend, Litecoin (LTC) stood out, showing steadiness amidst market volatility. Litecoin shows stability, backed by its classification as a commodity by the Commodity Futures Trading Commission (CFTC) in its legal action against the crypto exchange Kucoin.
According to a recent analysis by Into The Block, a substantial 75% of Litecoin investors are currently profiting from their investments. This is due to the regulatory agency classifying Litecoin as a commodity. Holding a significant majority in profitable positions highlights the potential of this cryptocurrency.
While the Ethereum continued its sideway trajectory for two consecutive days, sustaining above $3,300 subsequent to its recent plunge. Although this may suggest uncertainty between buyers and sellers, its Q1 performance shows consistent expansion across multiple sectors, even as discussions continue regarding its commodity classification.
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