After the last few super positive weeks, yesterday the cryptos Aptos (APT), Dogecoin (DOGE), and Ethereum (ETH) experienced a bear price dynamic.
The entire altcoin sector experienced a negative decline of approximately 6% compared to last week’s closing values.
Are we heading towards a more significant correction, or will the bulls soon return to print green candles?
Let’s see all the details below.
Summary
Analysis of the price of altcoins Aptos (APT) and Dogecoin (DOGE): slight decline in quotations
Yesterday, the holders of Aptos (APT) and Dogecoin (DOGE) were caught off guard when the two cryptos suddenly reversed their short-term price structure.
After growing by 48% and 180% respectively since the beginning of November, the coins have glimpsed the first signs of graphical weakness,
In the session on Monday, APT lost 5.59% of its value, while DOGE experienced a deeper decline of 8.74%.
Today the negative price trend seems to continue, with the bear trying to push the prices down.
The main reason for this drop is to be found in the price action of Bitcoin, which has also seen a change in directionality on small time frames.
The king of the cryptocurrency market has clearly lost the support of 95,000 dollars, bringing its price even below 93,000 dollars.
Due to this correction, the FOMO observed last week has waned, leading to a decrease in speculative activities.
Overall, between yesterday and today the altcoin market has seen approximately 61.5 billion dollars evaporate, equivalent to 6.6% of the capitalization TOTAL3 (excludes BTC, ETH, and stablecoins).
The analysis of derivative data on Coinglass supports the thesis of the decline in speculative holdings. The open interest on Dogecoin (DOGE) has dropped by about 500 million dollars, accompanying the decrease in the price of the cryptocurrency favored by Elon Musk.
Aptos (APT) recorded a less noticeable decline with about 30 million in open interest lost, but the situation remains similar to the memecoin.
The funding rate has also dropped drastically in recent days, demonstrating the excess leverage that has been punished by the bear crash.
The main outlook for these two altcoins remains bullish in the medium term, but it will be necessary to ensure that prices do not increase the bear pressure.
The price of Ethereum (ETH) falls below 3,400 dollars but the structure remains bull
Accompanying the negative movement of the crypto markets is also Ethereum (ETH), with its price yesterday once again falling below 3,400 dollars.
Here too the currency had to retreat from its expansive phase, started at the beginning of November with a performance of about 40%.
Since Thursday, November 21, a bullish impulse had even started, which would have suggested the immediate recovery of the target of 4,000 dollars.
Instead, ETH broke below the 50 EMA on the 1h chart, nullifying much of the progress of the last few days.
From the local top marked yesterday at 3,520 dollars, the cryptocurrency loses about 5% of its price, enough to influence the short-term outlook.
From here begins the risk of strong volatility, with both directions that could be targeted by investors.
From the analysis of ETH derivatives, however, a detail emerges that should not be underestimated.
While altcoins like Aptos (APT) and Dogecoin (DOGE) have experienced a drop in open interest, Ethereum (ETH) does not seem to be affected.
The sum of speculative futures positions remained almost unchanged at 21 billion dollars compared to the weekend data.
The funding rate has dropped significantly, highlighting a lower demand for leverage and a healthier speculative scenario.
It is also worth highlighting how the data from Deribit options on ETH are still particularly bullish.
The predominance of traders is towards call contracts, about three times compared to puts.
There are many bets with strike price above 4,000 dollars (price with highest notional volume) expiring on December 27, 2024.
This means that investors are still very bullish on the currency and expect an increase in its price from now until the end of the year.
Analysis of Bitcoin Dominance: new leg up coming?
In a context of price correction in the altcoin market, we cannot overlook the chart of Bitcoin Dominance.
On Thursday, November 21, BTC dominance suddenly dropped from 61.7% to below the key level of 60%. In that circumstance, altcoins surged upwards, accompanied by strong speculative activities. In parallel, the price of Bitcoin hovered just below $100,000, attempting several times the definitive push to reach the target.
The party of the shitcoiner continued until last night with the BTC.DOM chart that recorded more red candles, reaching 58.5%.
From that moment on, there has been a reversal with the dominance now back at 59.22%, where even the king has seen a graphical decline.
This highlights a scenario where in case of a drop, investors tend to seek refuge in more “stable” assets like Bitcoin, rather than staying with altcoins.
If now the dominance returns above 60% and continues the upward march, we can expect a new moment of protagonism for the first currency of the market.
If, on the other hand, the dominance falls below new local lows, we can likely expect a phase of euphoria in the altcoin world. APT and DOGE would certainly benefit from it.
Price predictions for APT, DOGE, and ETH for 2025
As mentioned, despite the overall market price decline, the main outlook remains bullish with a view to 2025.
The forecasts for Aptos (APT), Dogecoin (DOGE), and Ethereum (ETH) for the end of the bull run are breathtaking, and indicate values much higher than the current ones.
It is essential in a similar scenario to have a solid strategy to rely on and avoid making impromptu trades, at the risk of losing great opportunities.
According to the crypto influencer “AshCrypto,” the price targets for the next 6-12 months are as follows:
- ETH: 10,000-15,000 dollars
- DOGE: 1-3 dollars
- APT: 60-1000 dollars
These evaluations might be a bit too optimistic and the prices of the aforementioned assets might halt their bull run earlier.
However, this does not change the bullish structure of the entire cryptocurrency sector at this moment: fasten your seatbelts and enjoy the bull run!
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