Blockchain

Solana (SOL), the fifth largest cryptocurrency by market capitalization, has experienced a significant surge after undergoing a correction from its 20-month high of $125, reached on December 25.

Following a dip to the $85 level on Monday, January 8, SOL reclaimed the $100 level again, demonstrating a 6.4% surge in the past 24 hours. 

Moreover, technical analysis indicates a potential bullish continuation pattern known as a bull flag in Solana’s 1-hour chart, which suggests the possibility of further price gains beyond the previous high. 

Solana Optimism For Price Breakout

Technical analyst Ali Martinez has identified a bullish pattern known as a bull flag formation on Solana’s hourly chart. A bull flag is characterized by a consolidation period following a strong upward move. 

In this case, the dip to the $85 level could be considered the consolidation phase. The formation suggests that SOL may experience another significant upward move shortly.

As seen in the chart above, to confirm the validity of the bull flag pattern, SOL needs to achieve a decisive close above the $110 resistance level. Such a breakthrough could catalyze upward momentum and propel the price to new highs.

If the bull flag pattern holds, Ali Martinez anticipates that SOL could aim for an ambitious target of $163. However, Solana faces multiple resistance levels that it must overcome to reach the potential target indicated in Ali Martinez’s hourly chart analysis. 

The $110 resistance, the $120 mark, and the previous 20-month high of $125 present significant hurdles for Solana’s price action. These levels have the potential to impede further upward movement, as they have previously acted as resistance during the bear market of 2022. 

Additionally, the $132 and $137 levels are anticipated to provide additional resistance, as they were the price points from which Solana’s price decreased in April 2022. 

Lastly, the $151 and $154 levels will serve as the final thresholds for Solana’s bears to hold if they aim to halt any potential price increase before reaching the $163 target.

Solana’s Ecosystem Consistent Growth 

Despite the volatility in SOL’s price over the past month, Token Terminal data reveals consistent growth in Solana’s blockchain ecosystem. 

According to the data, Solana’s circulating market cap has surged impressively to $43.54 billion, representing a substantial 20.08% increase in value over the last 30 days.

Moreover, the fully diluted market cap has surged to $57.13 billion, reflecting an 18.82% growth, which illustrates a strong investor interest in Solana and its potential for future growth.

Solana’s revenue has also experienced substantial growth over the past 30 days, with a staggering increase of 217.18% to reach $5.68 million. On an annual basis, the revenue has reached an impressive $69.12 million, exhibiting a remarkable surge of 142.15%.

Ultimately, Solana’s fees have significantly increased over the past 30 days, with an increase of 217.18% to $11.36 million. On an annualized basis, the fees amount to $138.24 million, marking a substantial growth of 142.15%, reflecting the network’s growing usage and transactional activity.

Featured image from Shutterstock, chart from TradingView.com 

Ethereum (ETH) is currently at a crossroads that could define its trajectory in the coming weeks. Renowned crypto analyst Michaël van de Poppe has shared a notably bullish perspective, highlighting Ethereum’s approach to its 2022 low as a potential springboard for a breakout.

In his analysis, Van de Poppe underscores the importance of Ethereum’s current positioning, suggesting that its proximity to last year’s low could be a catalyst for absorbing liquidity and igniting a bullish trend.

Analyst’ Ethereum Bullish Projection Amid Market Movements

Van de Poppe’s forecast hinges on the broader market context, particularly the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the US. Should this approval materialize, he anticipates a significant impact on the ETH/BTC trading pair, potentially leading to a liquidation candle – a sharp price movement.

Subsequently, Van de Poppe predicts a substantial shift in market dynamics with funds rotating into Ethereum. This move, he believes, will be accompanied by a “bullish weekly divergence,” setting Ethereum on an upward trajectory.

#Ethereum approaches the low of 2022 and is likely going to take the liquidity there.

If an ETF approval for #Bitcoin happens, I think we’ll have a liquidation candle on ETH/BTC and after that a rotation into Ethereum, combined with a bullish weekly divergence. pic.twitter.com/kGq91S7kq9

— Michaël van de Poppe (@CryptoMichNL) January 9, 2024

Meanwhile, Ethereum appears to be struggling to catch up with Bitcoin’s price performance. It recently surpassed the $2,300 mark, echoing Bitcoin’s surge above $47,000 – its highest since April 2022.

However, Ethereum has seen a slight retracement and is currently trading around $2,249. This slight dip comes amid a week when the asset experienced a 5.8% decline, contrasting with its significant trading volume surge from $13 billion last Tuesday to over $23 billion today.

Upward Swing With Potential Spot Bitcoin ETF Approval

The critical factor in Van de Poppe’s analysis is the potential approval of a spot Bitcoin ETF in the US. The market is on edge, with major players like BlackRock leading the spot ETF race alongside others like Grayscale Investments, Valkyrie, and ARK 21Shares.

These firms have recently submitted updated 19b-4 filings for their proposed Bitcoin ETFs, with the market sentiment heavily leaning towards a positive outcome.

BlackRock just re-filed their S-1 based on last min comments given yesterday. Hard to tell what has changed at first glance, but imp thing is that the unheard of 24hr turnaround time bt filing, comments and re-filing tells us all parties aiming to get this show on road pronto. pic.twitter.com/61cPtGJ4Oy

— Eric Balchunas (@EricBalchunas) January 9, 2024

BlackRock, in particular, has stirred significant optimism in this spot Bitcoin ETF race. With an approval decision expected by January 10, tomorrow, such a development could bolster Bitcoin and catalyze a fund rotation into Ethereum.

Van de Poppe isn’t alone in his bullish stance on Ethereum. Crypto Tony, another prominent crypto analyst, shares a similar outlook. Tony posits that Ethereum’s path to a bullish phase could commence if it maintains above the key level of $2,130.

Currently trading above this crucial point, Ethereum’s stability at or above this level is considered a sign of market strength, potentially paving the way for future gains. Furthermore, a push towards and above the $2,500 mark could significantly bolster Ethereum’s bullish momentum, as highlighted by Crypto Tony.

$ETH / $USD – Update

The ETH range is simple. Remain above $2,130 and we are bullish .. Reclaim the range high at $2,500 and we are really bullish pic.twitter.com/YKOph2YbRY

— Crypto Tony (@CryptoTony__) January 8, 2024

Featured image from Unsplash, Chart from TradingView

Bitcoin has observed a sharp rally beyond the $47,000 level as data shows buying pressure on Coinbase has displayed no signs of letting off.

Bitcoin Has Surged More Than 4% In Last 24 Hours As ETF Deadline Nears

After the asset’s indecisiveness over the last few days, the cryptocurrency has appeared to have picked its direction in the last 24 hours, as its price has increased sharply.

At the peak of this surge, the coin had crossed beyond the $47,300 mark, but since then, the coin has registered some pullback as it’s now down to $46,500. The below chart shows how Bitcoin has performed during the last few days.

With this surge, the coin is up over 4% in the last 24 hours. The only cryptocurrencies in the top 20 market cap list that have attained better returns during this period are Solana (SOL) and Bitcoin Cash (BCH).

This latest rally to levels not visited since March 2022 has come for the cryptocurrency as the US SEC deadline for a decision on BTC spot ETFs is approaching fast.

With the expectation in the market widely being that the ETFs would get approved, it’s not surprising that buyers may be jumping in, expecting the asset to rally further after the ETFs start trading.

Data of an indicator could also point towards large entities being involved in accumulation in this leadup to the day of decision.

BTC Coinbase Premium Gap Has Been Positive For More Than A Week Now

As CryptoQuant Netherlands community manager Maartunn pointed out in a post on X, the Bitcoin Coinbase Premium Gap has been positive for several consecutive days.

The “Coinbase Premium Gap” refers to a metric that keeps track of the difference between the Bitcoin prices listed on cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair).

This indicator’s value tells us about the difference in the buying (or selling) behaviors on the two largest platforms in the sector. Below is a chart showing the recent trend in this metric’s 14-day simple moving average (SMA).

As displayed in the above graph, the Bitcoin Coinbase Premium Gap has been positive for almost 2024, with only one dip in the metric coming on the first day of the year.

This suggests that the buying pressure on Coinbase has been greater than on Binance for over a week now. US-based institutional investors widely use the former, while the latter hosts more global traffic.

Thus, this indicates that large institutional traders have possibly been going shopping recently. Another indicator that suggests accumulation from the whales is the “large holders netflow” metric from IntoTheBlock, which has displayed positive spikes recently.

“Large holders bought the dip! Bitcoin holders holding >1% of the supply accumulated more than 14k BTC over the past week as prices dipped below $43k,” explains IntoTheBlock.

Crypto exchange Coinbase, one of the largest exchanges in the world, has released its latest report on Bitcoin and the crypto market, highlighting its expectations for the Industry. The 44-page report launched by Coinbase Institutional in conjunction with Glassnode predicts a repeat of one of the most explosive bull markets in recorded crypto history; the 2018-2022 market cycle.

Coinbase Says Bitcoin Will Repeat 2018-2022 Cycle

In the report, Coinbase and Glassnode analysts take into account a number of indicators and metrics, such as total supply in profit, among others, to figure out which trend the next bull market is expected to follow. Now, after consideration and comparison to all of the previous bull cycles, the analysts settle on the 2018-2022 cycle being the most likely to be emulated this time around.

So far, Bitcoin and Ethereum are the cryptocurrencies that have shown the most correlation at the start of the 2018-2022 cycles, suggesting that a similar breakout could be in the cards. However, looking at the chart, it shows a sharp deviation from the previous cycles, especially as the bull market looks to be starting earlier than it did in 2020.

When it comes to the level of risk associated with assets such as Bitcoin and Ethereum, the report highlights the fact that crypto has deviated from traditional assets once again. This comes after the correlation between crypto and traditional finance markets rose to new all-time highs back in 2022. But as Coinbase explains, “2023 saw a reversion to historical norms, indicating that crypto can be a source of idiosyncratic risk.”

As another Bitcoin halving event draws near, Bitcoin has also seen a resumption in its surge, spurred forward by expectations of a Spot Bitcoin ETF. Coinbase notes that “As crypto has matured as an asset class and institutional participation has increased, volatility has trended steadily lower.”

What Happens If BTC Price Repeats 2018-2022 Cycle?

Looking back at the last bull cycle shows us what to expect if Bitcoin and the crypto market at large were to repeat the same trend. In this case, expectations would be that the BTC price would rise at least 3x higher than its previous all-time high price of $69,000.

In this case, Bitcoin would be looking at a value of at least $200,000 by the time the next bull market is in full swing. Following the 3.6x move that Bitcoin did to reach its new 2021 all-time high versus its 2018 all-time high, the BTC price would be looking at a cycle peak of almost $250,000.

As for Ethereum, following the same trend and doing a 3.2x from its previous all-time high to its new all-time high, it would put the ETH price above $15,000. In the same vein, the crypto market would also rise more than $10 trillion.

However, all of this is speculation as the crypto market has been known to deviate from expectations. Like the previous bull markets, the next one is expected to be novel, especially given the fact that institutional investors have fully come out to play. This could mean hundreds of billions of dollars in liquidity injections that could drive prices higher than expected.

As the US SEC prepares to make its final decision regarding Spot Bitcoin ETF approvals, the Depository Trust and Clearing Corporation (DTCC) has officially listed the Spot ETFs tickers from investment management firm, VanEck.

VanEck’s Spot ETF Ticker Listed on DTCC

American investment management firm VanEck’s Spot Bitcoin ETF has recently appeared on the active and pre-launch list of the DTCC. VanEck’s ETF can be identified by the ticker ‘HODL’ on the DTCC’s official platform. 

This move positions VanEck as a key player in the evolving landscape of Spot ETF investments. Additionally, the listing is seen as a crucial step towards integrating Spot Bitcoin ETFs into the mainstream financial sector if the United States Securities and Exchange Commission (SEC) decides to approve Spot Bitcoin ETFs. 

Alongside VanEck, WisdomTree’s Spot Bitcoin ETF ticker, ‘BTCW’ has also been officially listed on the DTCC website. The investment management firm previously submitted its Spot BTC ETF application to the US SEC in June 2023. However, the regulator has consistently delayed approval of WisdomTree’s Spot Bitcoin ETF application. 

The US SEC has also delayed 13 Spot Bitcoin ETF applications from prominent companies such as BlackRock, ARK Invest, Grayscale, and others. The regulatory agency faces a deadline of January 10, to either accept or reject these Spot Bitcoin ETF applications. 

Although there is a possibility for the SEC to decline Spot BTC ETFs several experts, including Bloomberg analysts, James Seyffart and Eric Balchunas have revealed a 90% chance of the regulator approving Spot BTC ETFs in January. 

VanEck Reveals $72 Million Bitcoin ETF Seed Fund

On Monday, January 8, VanEck submitted an amended Spot Bitcoin ETF S-1 filing to the SEC. In its filing, VanEck disclosed that the financial company had purchased 1,640.92489329 BTC worth $72.5 million on January 5, to support its Spot ETF.

The substantial seeding will provide a solid foundation for VanEck’s Spot Bitcoin ETF, potentially paving the way for increased participation by institutional investors. 

In addition to VanEck’s Seed Creation Baskets, major asset management companies in the Spot Bitcoin ETF race like BlackRock, Bitwise, and Fidelity have announced their various seed funds.

Bitwise revealed a $200 million seed fund made by Pantera Capital to support its Spot BTC ETF. The asset management company has also put forward $500,000 to fund its proposed Spot BTC ETF. 

Meanwhile, BlackRock and Fidelity have announced plans to seed their Spot Bitcoin ETFs with $10 million and $20 million respectively. BlackRock previously submitted an amended S-1 filing to the SEC in December, revealing a 227.9 BTC purchase to seed its Spot ETF by January 3. 

The crypto community is buzzing about the US Securities and Exchange Commission (SEC) approving spot Bitcoin Exchange-Traded Funds (ETFs). This anticipation has permeated market discussions and significantly influenced social media metrics around Bitcoin.

According to Santiment, a leading on-chain analytics platform, there has been a notable increase in Bitcoin’s social dominance in recent times, particularly in short-term periods.

Bitcoin Social Dominance Surge And Market Response

Santiment’s data reveals a spike in Bitcoin ETF-related conversations since mid-October, marking the highest level of social interest since the bullish rally. The top eight trending topics in these discussions include ETF, BTC, week, approval, BTC ETF, Monday, spot, and Gary, signifying the community’s focus on the potential ETF approval.

The potential #BitcoinETF approval is seemingly on all of the #crypto community’s mind as $BTC has surged above $46.1K for the first time since April, 2022. Wide expectations presume several #ETF applications will be approved simultaneously, which would immediately

(Cont) pic.twitter.com/60fc77UUp8

— Santiment (@santimentfeed) January 8, 2024

This trend is not just a reflection of growing investor interest but also points to the impact of social sentiment on market dynamics. As conversations around Bitcoin ETFs dominate social platforms, they highlight the significant role of community expectations and speculative discussions in shaping market trends.

Amid this heightened social chatter, Bitcoin’s market performance has mirrored the optimistic sentiment. Yesterday, the flagship crypto surged past the $47,000 mark, a notable achievement since April 2022.

Although there has been a slight retracement, with Bitcoin currently trading around $46,721, the asset maintains a 3.8% increase over the past day.

ETF Approval Anticipation: Analysts Offer Perspectives On SEC’s Swift Response

Notably, Bitcoin’s rally underscores the market’s responsiveness to the spot ETF buzz and the potential impact of the anticipated approval. So far, experts in the field have been closely monitoring these developments, offering their insights into the unfolding scenario.

One significant observation comes from James Seyffart, an ETF sector analyst, who offers an alternative view to the speculation of an approval delay by the US SEC.

Seyffart acknowledges the SEC’s recent comments on the S-1 filings of aspiring issuers, particularly regarding fee structures. However, he interprets these developments not as signs of postponement but as indications of the SEC’s readiness to progress.

1. This is true, comments came back on those S-1 documents with the fees that we all went crazy over this morning (this isn’t out of ordinary)
2. Expect to see more amendments tomorrow because of this
3. That said — I don’t think this is necessarily a delay signal https://t.co/o2m0lIBSct

— James Seyffart (@JSeyff) January 9, 2024

The promptness in the SEC’s feedback, Seyffart notes, is unusual for the agency and suggests an eagerness to advance the approval process. Echoing Seyffart’s opinion, ETF specialist Scott Johnsson remarked on the unusual swiftness of the SEC’s recent feedback.

Johnsson remembered how past ETF approvals, such as the futures-based ones in 2022, did not require fully completed S-1 forms for 19b-4 approval. Johnsson suggests that the current swift response from the US SEC likely indicates a deliberate effort to accelerate the approval and introduction of spot Bitcoin ETFs.

Yes, it’s unheard of. And to remind everyone, S-1s do not NEED to be complete when 19b-4s are approved. Take futures ETFs in 2022. Hashdex didn’t even get initial comments until after its 19b-4 was approved. More than anything, these quick comments demonstrate SEC working to push… https://t.co/SjIUIHxQD4

— Scott Johnsson (@SGJohnsson) January 9, 2024

This perspective offers a ray of hope to the crypto community, eagerly awaiting a favorable decision that could significantly impact the market and solidify Bitcoin’s position in the broader financial landscape.

Featured image from Unsplash, Chart from TradingView

Despite ETHBTC trending lower in favor of Bitcoin (BTC), there is a chance that the second most valuable cryptocurrency will recover in the months ahead. Taking to X in support of Ethereum (ETH), a crypto analyst, Mckenna, said a favorable combination of protocol-related and regulatory factors may support ETH, plugging the bleed versus BTC and sparking a refreshing rally.

Ethereum Under-performing Bitcoin: Will This Continue?

Looking at the ETHBTC weekly chart, it is evident that Bitcoin bulls have had the upper hand since August 2022. During this time, Bitcoin gained 42% versus ETH, with bulls pressing on when writing. 

To illustrate, Bitcoin is at a 2022 low versus ETH and will likely extend gains once a spot Bitcoin ETF is approved by the United States Securities and Exchange Commission (SEC). The crypto community expects this authorization to cement Bitcoin’s position, possibly drawing in billions in capital. 

Some analysts argue that this event could support altcoins, including Ethereum. So far, Ethereum, though edging lower versus Bitcoin, is firm against the USD. McKenna also notes that once a spot Bitcoin ETF is live in the United States, attention will shift to the SEC on whether it will also greenlight a similar product, but for Ethereum.

These 2 Factors Might Support ETH

Despite the ETH weakness versus BTC, Mckenna expects Ethereum to recover in the medium to long term. This is because of the expected preference for proof-of-stake (PoS) consensus systems over proof-of-work (PoW) methods that power Bitcoin.

PoW is a computationally intensive process that uses much energy for block confirmation. This has led to criticism from those who are concerned about the environmental impact of crypto mining. For this reason, Ethereum adopted a PoS system, fully transitioning in 2021 after the Merge.

Beyond the energy efficiency, the analyst also notes that the PoS in Ethereum provides ETH stakers with a base yield that will be considered “the safest bond instrument in the entire digital asset space.” Subsequently, this may support ETH, with many viewing it as a safe haven. This assurance is based chiefly on the fact that Ethereum is the second most valuable crypto network, with over $276 billion in market cap, according to CoinMarketCap.

Additionally, ETH will, in the long run, be deflationary following the activation of EIP-1559 in August 2021. This system burns a portion of gas fees- the base fee- taking a portion of ETH out of circulation. According to Ultra Sound Money, over 17,600 ETH have been destroyed in the last week alone, 1,000 ETH more than those network issues.

While Bitcoin exchange-traded fund (ETF) applications are still awaiting approval from the US Securities and Exchange Commission (SEC), executives from asset management firms are already speculating about the potential launch of spot ETFs for other major cryptocurrencies, including XRP and Ethereum (ETH). 

Valkyrie Invest’s Chief Investment Officer, Steven McClurg, expressed his belief that the SEC’s potential approval of a Bitcoin ETF could pave the way for similar offerings in the XRP and Ethereum markets. 

However, regulatory challenges and classifying XRP and Ethereum as securities may present hurdles toward these index funds.

XRP And Ethereum Spot ETF Potential Hurdles

Unlike Bitcoin, which has been classified as a commodity by regulators, XRP and Ethereum have been deemed securities. This divergence in classification poses potential difficulties and may necessitate a more complex approval process for spot ETFs tracking these cryptocurrencies. 

The anticipated impact of spot ETF approval on the XRP and Ethereum price would mirror the pattern seen with Bitcoin. Still, the SEC’s skepticism towards the broader cryptocurrency market could pose additional hurdles for XRP and Ethereum ETFs.

Nevertheless, the outcome of the ongoing Ripple vs. SEC case holds significant implications and could hold the key for the cryptocurrency industry to pursue these index funds for other cryptocurrencies. 

If Ripple, the blockchain payment company associated with XRP, emerges victorious and is not classified as a security by Judge Analisa Torres, it could establish a precedent for asset managers seeking to apply for an XRP ETF. 

This legal precedent could also prompt potential litigation against the SEC to support an Ethereum ETF application.

While discussions revolve around the possibility of spot ETFs for XRP and Ethereum, there is still uncertainty surrounding the approval of Bitcoin ETFs. 

The SEC may reject or delay the pending applications, making it uncertain whether these other index funds will materialize. Furthermore, US regulators’ current classification of XRP and Ethereum as securities adds an additional layer of complexity to their respective ETF prospects.

Bitcoin ETF Decision Imminent

As reported on Monday by NewsBTC, Sources close to the process have indicated that the ultimate approval for Bitcoin ETFs may come on Wednesday. 

CNBC’s sources suggest that this coincides with the application deadline for Ark Invest and 21 Shares, raising the possibility of a potential trading launch between Thursday and Friday. Several applications are expected to receive the green light, pending updates from the SEC on the filings.

Overall, as anticipation builds around the potential approval of Bitcoin ETFs, asset managers are already contemplating the prospect of spot ETFs for other major cryptocurrencies like XRP and Ethereum. 

However, the regulatory challenges and the classification of XRP and Ethereum as securities present significant hurdles for these index funds. The Ripple vs. SEC case outcome could have far-reaching implications, potentially setting a legal precedent for asset managers to pursue XRP and Ethereum ETFs. 

XRP is trading at $0.5673, showing a lack of bullish momentum with a 1% decline in the past 24 hours. Furthermore, it has experienced a continuous downtrend of 13% over the past 30 days.

Featured image from Shutterstock, chart from TradingView.com 

Crypto analyst Dark Defender has provided insight into how the XRP price could rise to $13. The analyst also suggested that the crypto token’s price could end up being way above that when other factors are considered. 

How XRP Will Rise To $13

In a post on his X (formerly Twitter) platform, Dark Defender stated that the XRP price could hit $13 when the total crypto market cap hits $23.24 trillion within a year. He noted how the crypto market has become more valuable year-on-year as it rose from $816 billion a year ago to around $1.6 trillion now. As such, he expects a “third wave” to happen with XRP’s rising with the tide. 

The analyst also hinted that there is the possibility that XRP could be higher than $13 as this price level will be achieved without considering its fundamentals. The fundamentals that he alluded to were regulatory clarity and XRP’s utility. XRP’s gaining legal clarity has been touted as one of its unique offerings and something that paints a bullish picture for the crypto token. 

Going by Dark Defender’s projections, the XRP price could also possibly have doubled from the $13 price level by 2027, as the analyst puts the total crypto market cap at $100 trillion by then. In a previous post, the analyst also raised the possibility of more institutional adoption of XRP, something which could also contribute to a significant rise in its price. 

XRP Price Set To Enjoy From Bitcoin’s Surge

Bitcoin rose to as high as $47,000 as approval of the Spot Bitcoin ETFs looks imminent. Following BTC’s latest surge, crypto analyst CryptoInsightUK hinted that XRP could be next. He had previously laid out a bullish narrative for altcoins, including XRP, as he stated that they could post significant gains as traders cycle their profits into smaller market-cap tokens.   

Specifically, he noted that it could be time for XRP to shine as the crypto token is closer than ever to a move to the upside. Another reason why this move seems imminent is because the narrative in the crypto community is “awful” for XRP, the analyst remarked. As part of his 2024 predictions, CryptoInsightUk sees XRP rising to between $10 and $15 as BTC rises to $100,000.

He believes the rally in the next bull run will be something similar to the one that happened in 2017. Interestingly, the analyst had previously raised the possibility of XRP repeating a rally similar to the one in 2017 when it posted a 61,000% gain. 

At the time of writing, XRP is trading at around $0.5724, up over 2%, according to data from CoinMarketCap. 

The analytics firm Santiment has revealed the list of altcoins that are showing the greatest bullish and bearish divergences currently.

RSI Reveals These Altcoins To Contain The Most Extreme Values Right Now

In a new post on X, Santiment has discussed some altcoins that are showing overvalued or undervalued conditions based on the Relative Strength Index (RSI) currently.

The RSI refers to a momentum metric in technical analysis that tracks the speed and magnitude of recent changes happening in the price of any given asset. This measurement can be made over any period, but in the context of the current topic, the 1-day RSI is of relevance.

Generally, a high value of this indicator can be a sign that the asset is overheated right now and may be at risk of forming a top. More specifically, the 70 mark is chosen as the cutoff for when the probability of a bearish reversal becomes significant.

On the other hand, the RSI being 30 or lower can imply the price is under its fair value at the moment, and as such, a potential reversal to the upside could be brewing for the asset.

Now, here is the chart shared by the analytics firm that shows the trend in the 1-day RSI for a few different altcoins from the top 150 market cap list over the past year:

As displayed in the above graph, the 1-day RSI has been at high levels for Maker (MKR), Venus (vBNB), and Sei (SEI) recently. To be more specific, the metric has a value of 74.6, 72.4, and 75 for vBNB, SEI, and MKR, respectively.

Clearly, these RSI levels are in the zone typically associated with an overheated market. Maker has recently enjoyed a sharp rally, observing gains of over 30% during the past couple of weeks. If this metric is anything to go by, though, the asset’s strong run may be approaching an end.

On the other end of the spectrum are the altcoins Elrond (ELGD), Arweave (AR), and Bonk (BONK), which are observing low levels of 1-day RSI. ELGD and AR are inside the underpriced zone with the metric sitting at 22.6 and 29, while the Solana-based memecoin BONK is floating just over the area with a value of 31.

According to Santiment, all six of these coins have also separated from the rest of the altcoins cohort, implying a bearish/bullish (depending on whether overvalued or undervalued) divergence could be forming for them.

As such, coins like BONK observing a bullish divergence may be likely to see some price rise, so that they can catch up with the other alts. Similarly, MKR and others may see a correction to be more in line with the rest of the market.

BONK Price

Bonk has had a bad time these last few weeks, as its price has been following an overall downward trajectory. The coin may finally be starting to turn itself around, however, as its price has shot up over 22% in the past 24 hours.