Signs of a Rally: New Santiment Report Suggests Bull Market is Around the Corner
While prices have been stagnant for months, there are signs that Bitcoin may reawaken soon, and an altcoin rally is possible.
Several token projects are showing bullish developments, suggesting the markets may have enough power to start staging rallies soon. One recent report by Santiment claims that favorable patterns can be seen in Basic Attention Token (BAT), Maker (MKR) and 0x (ZRX) tokens.
For BAT and ZRX, the positive sentiment includes both trading activity and on-chain activity. The two assets were recently added to Coinbase, potentially widening their popularity and usage. The indicator that suggests tokens are staging a bullish rally is a decoupling from the price of Ethereum. In the case of MKR, the decoupling may be due to the role of MKR as an asset supporting the DAI stablecoin. In the case of BAT and ZRX, one of the reasons is the large share of USD or Korean Won trading, as well as the influence of trading against Bitcoin (BTC).
Altcoins and tokens have always been more speculative. In the case of tokens, most of the assets are still far from their peak, and trade at very subdued levels. But the growing exchange infrastructure, popularity and technical achievements may help create a price rally. While BTC prices remain stagnant, altcoins and tokens manage to attract continuing speculative investment.
However, signals and predictions are notoriously uncertain, especially during times of very low liquidity. Currently, the total daily volume of an equivalent to $14 billion is only a fraction of the volumes during peak times. Some coins and tokens are truly in an “ice age”, with very low activity that has prompted a series of delistings from some of the older exchanges.
Ethereum (ETH) is another coin that has stagnated, but according to Santiment, even without an Ethereum rally, separate projects may forge their own paths. But the bullish sentiment is not spread throughout the markets, as projects, coins and tokens are charting separate paths, with previously hyped assets falling by the wayside and others managing to line up among the more liquid and potentially successful assets.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.