Top 3 Altcoins to Monitor as Bitcoin Surges Beyond $58,000

Cryptonews John Brightwater September 12, 2024

Top 3 Altcoins to Monitor as Bitcoin Surges Beyond $58,000

Summary
The cryptocurrency market is undergoing a recovery with Bitcoin exceeding $58,000. This positive trend is mirrored in several altcoins including Decentraland, The Graph, and Aave. Recent changes in U.S. economic factors, particularly reduced inflation, are driving this momentum, with Santiment analysis suggesting altcoins with high short funding may see significant rebounds.

The cryptocurrency market is currently experiencing a revival, with Bitcoin having notably surpassed the $58,000 mark after a prior downturn. This resurgence is accompanied by a 1% increase in the total market capitalization over the last 24 hours. Notably, several altcoins such as Binance Coin, Sui, and Cardano are also gaining traction. This positive momentum appears to be influenced by recent changes in the US economy, where inflation rates have decreased, culminating in a Consumer Price Index (CPI) of 2.5%, down from 2.9% last year. Market analysis from Santiment indicates that altcoins exhibiting elevated short funding rates might be on the verge of a rebound, potentially triggering short squeezes. Given these circumstances, three specific altcoins merit attention for their potential growth: 1. Decentraland (MANA): As Web3 and play-to-earn initiatives gain popularity, Decentraland is well-positioned for notable growth. Currently valued at approximately $594 million and enjoying a daily trading volume of about $27 million, MANA has realized a gain of over 3% in the past 24 hours, trading around $0.2719. Technical indicators suggest a potential price reversal, supported by a rising divergence on the daily Relative Strength Index (RSI). 2. The Graph (GRT): The Graph serves as an indexing protocol for blockchain data and has experienced a sudden uptick in short funding rates. Should these short positions face forced liquidations, a bullish surge could follow. With a fully diluted valuation of approximately $1.5 billion and trading volume of around $34 million, GRT has risen over 3% in the last day, trading at roughly $0.14. It is currently maintaining strong support above 12 cents while forming a double bottom pattern with bullish divergence on the daily RSI. 3. Aave (AAVE): Aave continues to excel as a decentralized finance (DeFi) protocol, functioning across multiple blockchains including Ethereum, BNB Chain, Avalanche, and Fantom. This mid-cap cryptocurrency, estimated at $2.4 billion with a daily trading volume near $461 million, has surged nearly 2% recently, trading at about $150. As the cryptocurrency landscape evolves, investors and analysts are keenly observing these developments for potential breakout opportunities. One must also remain cognizant of the broader economic factors that are steering market sentiments.

In the past week, Bitcoin has regained dominance, moving past the essential threshold of $58,000. This also coincides with a rise in the total market capitalization of cryptocurrencies. Analysts have pointed out that both cryptocurrency and stock markets are influenced by the recent progressions in the U.S. economy, particularly the reduction in inflation rates. As a result, certain altcoins are being highlighted for their prospects of significant gains, especially those showing high short funding rates, which may result in market rebounds due to short squeezes.

In summary, the cryptocurrency market is witnessing a resurgence, highlighted by Bitcoin’s recovery over the $58,000 mark and the rise of selected altcoins. Investors should pay attention to Decentraland, The Graph, and Aave, which exhibit the potential for further gains. This growth is not only a result of internal market dynamics but also reflects broader economic trends in the U.S. economy, particularly the decline in inflation, which has buoyed investor sentiment in the crypto space.

Original Source: coinpedia.org