When is altcoin season and will there be a bounce soon?
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Answer When is altcoin season and will there be a bounce soon?
Just like bitcoin, altcoin traders await a bull market season.
Since early 2022, the cryptocurrency market as a whole has seen a continuous price drop after a stunning price jump last year.
Many traders remained with open positions as they did not take profits in time, which is a clear indication of the prevailing negative market sentiment that has plagued the unfavorable macro environment.
Is altcoin season approaching?
according to “saint“There has been a boom in selling positions in altcoins.
The number of short positions is much higher than the long positions in altcoins.
This basically means that there are more traders who bet on lower prices than those who bet on higher prices.
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Historical data shows that such scenarios may generally lead to a price spike.
It remains to be seen if this price rebound will occur and subsequently lead to a short season of altcoins.
According to “Santiment”:
With the cryptocurrency markets dropping on Thursday, short positions were opened in large quantities for most of the cryptocurrencies as traders try to take advantage of the lower prices.
Historically, when funding rates showed significant shortcomings, liquidations were more common and sudden bounces could occur.
It is worth noting that altcoins are also affected by macroeconomic events and sentiment such as Bitcoin.
Whenever the bitcoin price drops due to the overall deflation, the altcoins also experience a price decline later.
Pretty much the same with most of the top 100 cryptocurrencies by market capitalization.
Almost all major cryptocurrencies are currently trading at a loss of 70% from the peak range recorded last year.
At the time of this writing, Ripple is at $0.44, down 3% in the past 24 hours, according to price tracking platform CoinMarketCap.
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Cardano Cardano (ADA) is currently trading at $0.33, down 4.5% in the last 24 hours while Solana (SOL) price is standing at $28, down 3% in the last 24 hours.
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