The total market capitalization for the altcoin industry has consolidated around $566 billion after the January rally saw an increment of $100 billion from last year’s ATL. The Ethereum (ETH) market has held dominance of more than 38 percent in the altcoin industry with its valuation at around $218 billion on Friday.
Bitcoin Dominance Trends
With Bitcoin dominance showing a lot of indecisiveness in the next move around 48 percent, crypto traders have no option than wait for a clear signal.Moreover, Bitcoin’s dominance is a significant factor when considering the next move in the altcoin market. Typically in the crypto bear market, money tends to rotate from Bitcoin to the altcoin industry due to low capital inflow from new investors compared to bull rallies.When considering these altcoins, it is worth noting that Ethereum (ETH) is large-cap, Polygon (MATIC) and Chainlink (LINK) are considered medium-cap, whilst Pepe (PEPE) is small-cap. As a result, it is prudent to consider the diminishing return concept when analyzing each of the altcoins.
On Friday, the Ethereum price hovered around the pre-Shanghai levels despite the overall crypto bearish outlook. Having closed last week in a Doji candlestick pattern, there is a high chance the king of smart contracts and the DeFi ecosystem will end this week around the same level. However, if Bitcoin price slips below $26k in the coming days, Ethereum bears will be rejuvenated to push around $1700.
The Chainlink (LINK) precariously held on a support level of around $6.2 on Friday. Nevertheless, the bears have the upper ground in the short-term, despite ranging between $9.4 and $5.4 since June last year.
As for this Ethereum-scaling network, Polygon (MATIC), the price jumped about 3 percent on Friday after consolidating around $0.86 during the week. Nevertheless, the MATIC price will have to break above the 50 MA and the logarithmic downtrend to confirm a bullish outlook.
The frog-themed meme coin, Pepe, has in the past three weeks been in a correction mode after rallying to ATH earlier this month following the listing on Binance. The meme coin has in the past two days found a temporary support around $0.00000145.