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With Bitcoin surpassing its all-time highs, the crypto market has turned bullish, and a potential altcoin rally is on its way. Recent data and analysis by popular crypto analyst Moustache suggest that altcoins are yet to break their November 2021 highs, hinting at a possible upward price rally. This scenario echoes a pattern observed in 2013, which eventually led to an all-time high (ATH) for the altcoin market cap in 2017.
With the market poised for a potential surge, the question arises: Who will lead the upcoming rally—AI tokens or memecoins? Let’s find out in this blog.
Ethereum’s Role in Altcoin Rally
Ethereum (ETH) often takes center stage when discussing altcoin rallies due to its significant potential to initiate and influence such movements. However, current metrics indicate a mixed picture for ETH. While its price experienced a notable 10% increase last week, various indicators such as the Relative Strength Index (RSI) and stochastic are in overbought zones, signaling potential selling pressure.
The Memecoin Surge
In the last few weeks, the crypto market witnessed a substantial rally in meme coins, with notable performers like Bonk (BONK), Pepe (PEPE), Dogecoin (DOGE), dogwifhat (WIF), and Shiba Inu (SHIB). PEPE, in particular, saw a staggering 725% surge, driven by positive indicators like the MACD, Average Directional Index, and RSI. Meanwhile, DOGE and SHIB recorded impressive gains of 115% and 250%, respectively. Despite some bearish sentiment for DOGE, SHIB remained in the positive zone. The recent uptick in meme coin prices suggests the potential for these tokens to play a crucial role in the upcoming altcoin rally.
AI Tokens: Worldcoin (WLD) and Fetch.ai (FET)
Investors and analysts are closely observing AI tokens, majorly represented by Worldcoin (WLD) and Fetch.ai (FET), in the context of the impending altcoin rally.
Worldcoin (WLD), with a recent price surge of 33.25% in the last week, has shown improved social volume, indicating increased popularity. However, a closer look at WLD’s daily chart reveals signs of an impending correction, with indicators like RSI and CMF trending downward.
Fetch.ai (FET) faces a similar situation, with a 50.52% growth in the last 24 hours. Both tokens’ charts reflect a touch on the upper limit of the Bollinger Bands, suggesting potential price corrections. The market condition and consolidation phase may be contributing factors to the current state of AI tokens.
Bitcoin’s Influence
While altcoins show promise, how can we not mention the role of Bitcoin (BTC), given its dominant position in the crypto market? BTC’s recent movement towards the $72,000 mark has fueled hopes for a fresh rally. The sheer dominance of Bitcoin means that any significant rally in altcoins might be influenced by Bitcoin’s performance.
Bottom Line
As the crypto market gears up for a potential altcoin rally, the spotlight is on AI tokens and memecoins. Ethereum’s mixed metrics, meme coins’ recent impressive performances, and the volatile nature of AI tokens raise intriguing questions about who will lead the charge.
While the top altcoins and Bitcoin will likely continue to shape the broader market trends, the unique characteristics of AI tokens and memecoins make them compelling contenders in the race for the next altcoin rally. Investors and enthusiasts will keenly observe these diverse tokens as the crypto landscape unfolds in the coming months. The intersection of technology, market dynamics, and community sentiment will ultimately determine the trajectory of the next altcoin rally, making it a captivating period for crypto enthusiasts and investors alike.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
