<\/p>\n
- \n
- Ethereum and BNB\u2019s prices dropped by 3% and 4%, respectively, over the past week<\/span><\/li>\n
- XRP was also down by 8%, with most market indicators bearish too<\/span><\/li>\n<\/ul>\n
The altcoin market has taken a blow of late after most cryptos witnessed a price correction. The top three altcoins, namely,<\/span> Ethereum [ETH]<\/span><\/a>,<\/span>BNB Chain<\/span> <\/a>[BNB], and <\/span>XRP,<\/span><\/a> were no exception. If the latest data is to be considered, the top three altcoins\u2019 combined market capitalization has reached a critical level, which can determine how the market might look in the days to follow.<\/span><\/p>\n
\nRead<\/span> Ethereum\u2019s [ETH] Price Prediction<\/span><\/a> 2023-24<\/span><\/p>\n
\nAltcoins can witness a rally if\u2026<\/b><\/h3>\n
Mags, a popular crypto-analyst, recently posted a tweet on X (formerly known as Twitter), highlighting an interesting event related to altcoins. Currently, the total market cap of the top 3 altcoins is $320 billion. In doing so, he also shared two possible outcomes \u2013\u00a0<\/span><\/p>\n
\n
#Altcoin<\/a> Marketcap \ud83d\ude33<\/p>\n
TOTAL3 is currently sitting at $320 Billion <\/p>\n
Two Possible Scenarios : <\/p>\n
1) If price breaks below the current support level we can expect a re-test of 2017 ATH, which is now a strong monthly support zone around $240 Billion.<\/p>\n
2) If the price manages to\u2026 pic.twitter.com\/988OPKO1vT<\/a><\/p>\n
\u2014 Mags (@thescalpingpro) October 11, 2023<\/a><\/p>\n<\/blockquote>\n
If the price breaks below the current support level, we can expect a re-test of the 2017 ATH, which is now in a strong monthly support zone around $240 billion. The second possibility is that if the price manages to break out above the local trendline resistance and front-run the monthly support level, we can expect an aggressive uptrend from here. <\/span><\/p>\n
Since both possibilities are completely contrary from each other, a closer look at all three top altcoins can provide better clarity on which outcome is more likely.<\/span><\/p>\n
Ethereum looks bearish<\/b><\/h3>\n
CoinMarketCap\u2019s<\/span> data<\/span><\/a> revealed that the king of altcoins\u2019 price plummeted by more than 4% last week. At the time of writing, ETH was trading under the $1,600-mark at $1,560.32 with a market cap of over $187 billion. There was more bad news, as most on-chain metrics were also in the sellers\u2019 favor.\u00a0<\/span><\/p>\n
For example, Ethereum\u2019s<\/span> exchange reserve<\/span><\/a> was increasing at press time. This meant that selling pressure on the token has been high. In fact, both ETH\u2019s Korea premium and Coinbase premium were red too \u2013 A sign that investors from the US and Korea have been selling their assets.<\/span><\/p>\n
![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/10\/CryptoQuant-ETH-2.png\")
<\/a><\/p>\nSource: CryptoQuant<\/p>\n<\/div>\n
ETH\u2019s trading volume also plummeted over the last few days. This indicated that investors have been reluctant to trade the token. Selling sentiment was dominant in the derivatives market as well, because<\/span> ETH<\/span><\/a>\u2019s taker buy\/sell ratio turned red recently. <\/span><\/p>\n
However, CryptoQuant\u2019s data revealed that ETH\u2019s stochastic was in the oversold zone. This can help increase buying pressure and in turn, push the token\u2019s price in the days to come.<\/span><\/p>\n
How is BNB Chain doing?<\/b><\/h3>\n
BNB\u2019s state was also pretty similar to that of Ethereum as its value dropped. Over the last seven days, BNB Chain\u2019s price has fallen by more than 3%. At press time, it was<\/span> trading<\/span><\/a> at $205.39 with a market cap of $39.5 billion. <\/span><\/p>\n
If market indicators are to be believed, BNB\u2019s price might go down further. Both the Relative Strength Index (RSI) and Money Flow Index (MFI) registered downticks.<\/span> BNB<\/span><\/a>\u2019s Chaikin Money Flow (CMF) was also hovering below the neutral zone. On top of that, the MACD displayed a clear bearish upper hand, further increasing the chances of a sustained downtrend.<\/span><\/p>\n
![\"\"](\"image\/svg+xml,%3Csvg%20xmlns=\")
![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/10\/BNBUSDT_2023-10-12_14-22-41.png\")
<\/a><\/p>\nSource: TradingView<\/p>\n<\/div>\n
However, unlike Ethereum, BNB\u2019s derivatives market stats seemed optimistic. For example, Coinglass\u2019s data pointed out that while BNB\u2019s price dropped, its funding rate also declined. This suggested that investors have been reluctant to buy BNB at a lower price. Additionally, a similar trend of decline was also noted in<\/span> BNB<\/span><\/a>\u2019s Open Interest, which suggested that there were chances of a trend reversal.<\/span><\/p>\n
![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/10\/Coinglass-BNB.png\")
<\/a><\/p>\nSource: Coinglass<\/p>\n<\/div>\n
Whales are interested in XRP<\/b><\/h3>\n
Amidst all this,<\/span> XRP<\/span><\/a> whales showed immense interest in the token. This was evident from the rise in its total number of whale transactions over the last few days. Additionally, its social volume also remained pretty high, reflecting its popularity in the crypto-market.<\/span><\/p>\n
![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/10\/XRP-Ledger-XRP-14.27.27-12-Oct-2023.png\")
<\/a><\/p>\nSource: Santiment<\/p>\n<\/div>\n
However, XRP was the most affected altcoin among the top three during the latest price correction as its value dropped by more than 8% in the last seven days. Thanks to the unprecedented price decline, XRP\u2019s 1-week price volatility shot up too.\u00a0<\/span><\/p>\n
At the time of writing, XRP was trading at $0.4772 with a market cap of more than $25.5 billion, along with a 7% fall in its daily trading volume.<\/span> XRP<\/span><\/a>\u2019s fate also looked similar to that of the other two, as its market indicators remained bearish. Its CMF and MFI both registered downticks and were resting near the neutral zone.<\/span><\/p>\n
- XRP was also down by 8%, with most market indicators bearish too<\/span><\/li>\n<\/ul>\n
![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/10\/XRPUSDT_2023-10-12_14-29-41.png\")