Solana posts 10% weekly gains, with attention shifting to altcoins as BTC, ETH consolidate along equilibrium
- Solana price is up 10% in the last week, outperforming big market cap coins even on daily timeframes.
- Meanwhile, Bitcoin and Ethereum continue to knit around their respective equilibriums, $29,406 and $1,848, respectively.
- With BTC and ETH showing tied within range, investors are shifting to altcoins like SOL and SHIB.
Solana (SOL) price has recorded notable gains, outperforming cryptocurrencies with big market capitalizations like Bitcoin (BTC) and Ethereum (ETH). It comes as the market holds out hope for a catalyst to drive the market, with expectations around the Exchange Traded Fund (ETF) running bleak.
Solana price leads investor interest in altcoins
Solana (SOL) price is up 10% in the last week, standing next to Shiba Inu (SHIB), which boasts a stark 10% rally in the same frame. Meanwhile, Bitcoin and Ethereum continue to entangle along their respective equilibriums while auctioning for $29,406 and $1,848 at the time of writing.
SOL/USDT 1-day chart, BTC/USDT 4-hour chart, ETH/USDT 4-hour chart
The disparity points to a shifting interest in favor of altcoins as investors look for trades with more action.
$BTC / $USD - Update
— Crypto Tony (@CryptoTony__) August 13, 2023
I knew this would be the case and we would remain just above this EQ for the weekend. 0.01% move yesterday, so my attention for now is on #Altcoins and i have my alerts set incase we do drop below the EQ on #Bitcoin pic.twitter.com/ybJ1ngxLHS
As reported, the Shiba Inu price rally is driven by FOMO, the fear of missing out, after a vague message from the SHIB team.
Soon ™️
— Shib (@Shibtoken) August 11, 2023
For Solana, however, the layer-1 (L1) blockchain, often called Ethereum killer, has breached the $24.00 level to exchange hands for $24.74 while confronting the $25.31 resistance level. A decisive flip of this supplier congestion level would pave the way for more gains, potentially sending SOL to the $27.46 resistance level.
Nevertheless, it is impossible to ignore that uncertainty continues to prevail in the market, considering the speed it took for Bitcoin to turn around from the $30,000 range, bringing altcoins down with it.
Still, the fact that altcoins are recording more actionable price movements has caught the interest of traders, especially in the retail market. Besides Solana, Toncoin (TON) is trading with a bullish bias after recording a 6% rally on the last day.
The asymmetric effect of Bitcoin price action on altcoins
Regarding price correlation with Bitcoin, altcoins run the sweep, sometimes skyrocketing in value with BTC or remaining unfazed at other times. There are also instances, particularly when there is intense upheaval in the market when the value of altcoins dips more than Bitcoin price.
The money usually flows to Bitcoin or altcoins after a heavy capital inflow into the market. When it goes to BTC, it's market capitalization and dominance rise. However, when the capital inflow goes to altcoins, the market capitalization of altcoins rises, and therefore the dominance of altcoins grows, potentially sparking an alt season.
If Bitcoin price continues trading within the narrow range, trader interest in altcoins could grow relative to BTC, kickstarting an altcoin season. However, if interest and, therefore, capital flows into both Bitcoin and altcoins, the total crypto market capitalization would increase, ushering the industry into a bull market.
Cryptocurrency prices FAQs
How do new token launches or listings affect cryptocurrency prices?
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity of an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
How do hacks affect cryptocurrency prices?
A hack is when an attacker captures a large volume of the asset from a DeFi bridge, hot wallet of exchange, or any other crypto platform via exploits, bugs, or other methods. The exploiter then transfers these tokens from the exchange platforms to sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
How do macroeconomic releases and events affect cryptocurrency prices?
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through their direct impact on the US Dollar. An increase in interest rate typically negatively affects Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading get cheaper, driving crypto prices higher.
How do major crypto upgrades like halvings hard forks affect cryptocurrency prices?
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
