• About Us
  • Privacy Policy
  • Contact Us
Subscribe
Lascena
Advertisement
  • Home
  • Bitcoin
  • Cryptocurrency
    • Altcoin
    • Litecoin
    • Ethereum
  • Blockchain
  • Regulation
  • Market
  • Prices 2021LIVE
  • Videos
No Result
View All Result
  • Home
  • Bitcoin
  • Cryptocurrency
    • Altcoin
    • Litecoin
    • Ethereum
  • Blockchain
  • Regulation
  • Market
  • Prices 2021LIVE
  • Videos
No Result
View All Result
Lascena
No Result
View All Result

Fears of a Crypto Crash Grow: On-Chain Data Signals Imminent Altcoin Weakness

December 1, 2020
in Altcoin
Reading Time: 3min read
Fears of a Crypto Crash Grow: On-Chain Data Signals Imminent Altcoin Weakness



Although all altcoins are not yet rallying in tandem, some top crypto assets have been outperforming as of late.

Case in point: CoinMarketCap data as of the time of this article’s writing, XRP — the third-largest cryptocurrency by market capitalization — is up 10% in the past 24 hours, outpacing Bitcoin’s relatively mild 0.5% gain.

This rally in some of the leading altcoins is unlikely to continue, with crypto firms observing a clear slowdown in on-chain activity for coins like Cardano, Bitcoin Cash, and Chainlink.

Sorry Bulls: Top Crypto Assets See On-Chain Activity Slow

Over the past few weeks, altcoins across the board have seen impressive rallies as Bitcoin has stagnated in the high-$6,000s and $7,000s.

Among the altcoins that have outperformed include Cardano, Chainlink, and Tezos. While Bitcoin tacked on 15%, the cryptocurrencies mentioned, all multi-billion-dollar assets, have experienced gains of 45% to 65%.

Many of these moves were predicated on fundamental developments pertaining to the projects, but on-chain and market data shows that the chance of a drop is growing.

IntoTheBlock — a blockchain intelligence firm — found that a number of its proprietary signals are “mostly bearish” for some leading crypto assets.

Below is the firm’s dashboard for Cardano as of April 28th.

It indicates that the “Large Transactions” — which tracks multi-million-dollar transactions on the blockchain” — and “Bid-Ask Volume Imbalance” — the skew of a market’s order books — suggest bearish price action is on the horizon, while most of the other signals are mostly trending neutral.

Data from IntoTheBlock

Similar trends have been spotted for Bitcoin Cash and Chainlink, which both registered as “mostly bearish” by IntoTheBlock.

All Altcoins Could Drop, Analyst Fears

It’s important to note that the abovementioned signals only suggest that a short-term altcoin correction is imminent, but some fear that this underperformance could be a longer-term trend for the crypto market as a whole.

An analyst at crypto research firm Blockfyre recently remarked that he intends on reducing his exposure to altcoins  because he believes Bitcoin’s block reward reduction will cause volatility that results in altcoins “getting rekt.”

The analyst continued that from how he sees it, altcoins are always a “game of musical chairs” as the reasons they are rallying, Pentoshi explained, are all “red flags,” not fundamental developments:

“The reason the alt pumps are unconvincing is because they have followed the same patterns. IEO’s, Interoperability, privacy coins moving together. It’s coordinated as it has been the last 3 years instead of all ships rising together.”

This skepticism has been echoed by others pointing to how the fundamental narratives in the crypto industry are all focused on Bitcoin — a bellwether for the rest of the industry, especially in such uncertain macroeconomic and geopolitical times. 

Photo by nikko macaspac on Unsplash





Source link

Facebook0
Twitter0
Linkedin0
Print0
E-mail0
Yahoo Mail0
GMail0
SMS0
Messenger0
Tags: AltcoinCrashCryptoDataFearsGrowImminentOnchainSignalsWeakness
Next Post
Is Crypto the Answer to Australian Banks Invading User Privacy?

Is Crypto the Answer to Australian Banks Invading User Privacy?

Australia and Singapore to Trial ‘Paperless’ Trade Using Blockchain Technology

Australia and Singapore to Trial 'Paperless' Trade Using Blockchain Technology

Please login to join discussion

Don't Miss

BITCOIN TO $50,000 – THE FEDERAL RESERVE GUARANTEES IT!!! Price Prediction – Crypto News 2020
Cryptocurrency Videos

BITCOIN TO $50,000 – THE FEDERAL RESERVE GUARANTEES IT!!! Price Prediction – Crypto News 2020

by Lascena Cryptocurrency News Education
February 26, 2021
0

Bitcoin will go to at least $50,000, the actions of the Federal Reserve basically guarantee it, the Bitwise price prediction....

Read more
Ripple XRP ”It’s All Over We Can’t Save It!” | Robert Kiyosaki

Ripple XRP ”It’s All Over We Can’t Save It!” | Robert Kiyosaki

February 26, 2021
Can Investing In Cryptocurrency Make You A Millionaire? Bitcoin & Eth Getting Ready To 🚀Crypto News

Can Investing In Cryptocurrency Make You A Millionaire? Bitcoin & Eth Getting Ready To 🚀Crypto News

February 26, 2021
Grin ASIC Miners Canceled?! Innosilicon SECRETLY MINING with G32 Grincoin miners?!

Grin ASIC Miners Canceled?! Innosilicon SECRETLY MINING with G32 Grincoin miners?!

February 26, 2021
Craig Wright demands that ‘Bitcoin developers’ return him $5 billion in BTC

Craig Wright demands that ‘Bitcoin developers’ return him $5 billion in BTC

February 26, 2021

Lascena Cryptocurrency News Education

We have all the latest updated and legitimate information related to Blockchain, Cryptocurrency, latest market rates & trends, prices, new regulations along with every other thing that somehow related to crypto or digital currency market. Our main idea is to provide the kind of news that is original and at the same time, it can prove to be beneficial for our audience.

© 2020 lascena.ca

  • About Us
  • Privacy Policy
  • Contact Us
No Result
View All Result
  • Home
  • Bitcoin
  • Cryptocurrency
    • Altcoin
    • Litecoin
    • Ethereum
  • Blockchain
  • Regulation
  • Market
  • Prices 2021
  • Videos

© 2020 lascena.ca

  • bitcoinBitcoin(BTC)$45,369.00-10.24%
  • ethereumEthereum(ETH)$1,433.56-12.73%
  • tetherTether(USDT)$1.010.59%
  • Binance CoinBinance Coin(BNB)$215.76-13.43%
  • cardanoCardano(ADA)$1.00-4.66%
  • PolkadotPolkadot(DOT)$28.83-14.92%
  • rippleXRP(XRP)$0.425628-10.63%
  • litecoinLitecoin(LTC)$166.60-8.97%
  • chainlinkChainlink(LINK)$24.00-12.37%
  • bitcoin-cashBitcoin Cash(BCH)$472.50-11.78%