3 Altcoins to Buy for Quick Gains as Jerome Powell’s Comment Crashes Crypto

by

As a seasoned cryptocurrency investor with years of experience under my belt, I find myself intrigued by the current market conditions. The recent dip in the prices of popular coins like WI, DOGE, and SUI presents an opportunity for savvy investors to buy low and potentially reap significant gains in the near future.

The decrease of 25 basis points in the Federal interest rates, often seen as a positive sign for the stock market, led to a significant retreat in the cryptocurrency sector. This pullback caused Bitcoin‘s price to plummet, with its current value being BTC $102 496. Over the past 24 hours, Bitcoin has shown a volatility of 1.9%, and it currently holds a market cap of $2.02 trillion, with a 24-hour trading volume of $106.82 billion. This decline in Bitcoin’s price initiated a collapse in the altcoin market, causing many of them to break below their critical support levels.

Amid the volatility spike, will the altcoin market manage a quick recovery before 2025?

Jerome Powell’s Final Cut before 2025

Following the Federal Reserve’s interest rate reductions, an initial optimistic impact soon transformed into widespread concern. In his statement, Jerome Powell, the Federal Reserve chairman, suggested that the rate decreases predicted for 2025 might not be as steep as traders had anticipated.

The aggressive remarks have fueled a rise in apprehension across the cryptocurrency and stock markets. As traders grow increasingly jittery, the number of forced sales (liquidations) has skyrocketed.

Altcoins Crash amid Hawkish Comments

With Bitcoin experiencing a fall, the combined value of all cryptocurrencies apart from Bitcoin and Ethereum dipped to a minimum of $954 billion. However, it showed some signs of recovery by touching the 200-day moving average line at around $992 billion.

Over the past day, the overall crypto market has experienced a liquidation of approximately $780.56 million. This encompasses $143.76 million in Bitcoin and $124.51 million in Ethereum. Currently, Ethereum is priced at $3,705, with a 24-hour volatility of 4.4%. The market capitalization stands at an impressive $445.75 billion, while the total volume over the last 24 hours reaches $55.39 billion.

These altcoins – WIF ($2.30), BONK ($0.000031), Fantom (FTM $1.16), and Pepe (PEPE $0.000019) – have experienced substantial declines over the past 24 hours. Each of these digital assets, including DeFi and meme coins, has lost approximately 10-11% in value during this period.

As a researcher, I find it plausible that the recent news may have sparked a stronger-than-expected reaction in the cryptocurrency market. Some traders might see this as a chance to acquire these assets at a reduced price. Essentially, the crypto market tends to be sensitive to the Federal Reserve’s future outlook, which can lead to increased uncertainty and selling activity.

On the other hand, it could be an opportunity to acquire these assets at a reduced cost, should you believe that the market is poised for recovery.

Top Altcoins to Pay Attention to

Amidst a sea of discounted cryptocurrencies, these leading altcoins now seem ripe for purchase at crucial support points. Let me share with you the top three altcoins that you might consider investing in during this market adjustment period.

Solana (SOL)

In the context of a falling channel pattern on the 4-hour chart, Solana ($SOL) at $210.7 offers a potential buy opportunity after a recent dip. Although it experienced a drop of 7.53% last night, forming a bearish engulfing candle, its price continues to hold above the crucial $200 mark. With a daily volatility of only 3.0%, a market cap of $100.70B, and a 24-hour volume of $8.96B, this could be an appealing buy-the-dip moment for investors.

In addition, the fluctuations in the altcoin’s price seem to suggest a potential double-bottom reversal, with a bullish divergence in the RSI line. Using Fibonacci levels and considering the falling channel, it’s possible that Solana could rebound to around $233, aiming to touch the upper trendline.

If the rally extends, the breakout run will pump the SOL price to $260 before 2025.

SUI (SUI)

As an analyst, I observed a bullish reversal in SUI today, with the price bouncing back from a 24-hour low of $4.07 to reach $4.40. This price action forms an intraday Doji candle, indicating potential indecision within the market but ultimately a shift towards bullish sentiment. The reversal appears to be supported by both the 20-day Exponential Moving Average (EMA) and a long-standing trendline. With a 24-hour volatility of 2.8% and a trading volume of $2.71 billion, it seems that market participants are actively participating in this price movement. The market cap of SUI currently stands at $12.87 billion.

The bullish reversal from the underlying support floats the market price above the $4.35 level or the R1 pivot resistance mark. As the recovery gains momentum, the altcoin will likely test the overhead trendline of the rising channel.

In such a case, the SUI price will R2 pivot level at $5.2359, creating a new all-time high.

Dogecoin (DOGE)

After plummeting by 9.13% yesterday, Dogecoin (DOGE) now stands at $0.37. Over the past 24 hours, it has shown volatility of 5.7%. Its current market cap is a substantial $53.53 billion, with a trading volume of $6.84 billion over the last day. In the last week, Dogecoin has experienced a decline of 12.25%, bringing the price down to a significant support level at approximately $0.3391.

Regardless of the decline, the altcoin’s price is holding firm near the S1 pivot support at around $0.3584. Additionally, the Relative Strength Index (RSI) line indicates a bullish trend, enhancing the likelihood of an upward move.

If the Dogecoin prices recover, they might aim for the R2 pivot level, which is approximately $0.5159. This suggests that the meme coin could break through the $0.50 psychological barrier and reach a fresh 52-week high.

Read More

2024-12-19 13:53