200 Interactions, 6 today
The current altcoin season, which began with Dogecoin’s price surge, may have slowed for the time being. When compared to last week’s values, altcoins such as ADA, BCH, LTC, ETH, LINK, and VET are currently up by double digits. The growing interest in altcoins through exchanges is the primary driver of price increases.
The other aspect is the reserve around spot exchanges. It has been noted that altcoin whales have switched their funds from centralised exchange wallets to other wallets before the market rally begins. Based on CryptoQuant info, here is the average amount of outflows across all exchanges for AAVE, SUSHI, LINK, UNI, BAT, and SNX.
The data for altcoins show a notably increasing (and dumping) amount of whale addresses emerging on their respective networks; the rising trend is obvious. It is impossible to decide whether BNT, CEL, SKL, RDN, SUSHI, and YFI are bullish or bearish based on currency reserves. Traders are likely to weigh uncertainty, social volume, and the price relationship between altcoins when determining this.
The social volume has decreased in the last week, but the decreases have coincided with price increases. SUSHI is one of the leading altcoins in terms of social volume, but this is not the case for UNI, BAT, or AAVE. This cryptocurrencies have a high level of uncertainty and network operation. SUSHI’s social amount has a close connection to its price as LINK’s.
Retail traders can keep an eye out for pattern reversals in altcoin rallies based on a mix of social volume and exchange reserves. However, there is a thin line between an asset being overpriced and an asset being overpriced enough to be shorted.
Based on the price pattern and shorting details, this gap has been noted; currently, there is no evidence of fatigue in the futures market. It may have slowed for Bitcoin and top altcoins, but ETH shows no signs of slowing, making it one of the top altcoins expected to be shorted in the near term.