Altseason Incoming: Trader Predicts Dogecoin Surge, Warns of Solana Crash
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Written by
Yana Levkovich - Updated 2024-09-23 18:48:29
Crypto analyst Ali Martinez suggests that the time for altcoins to outperform Bitcoin (BTC) is drawing near, with Dogecoin (DOGE) potentially positioned to benefit significantly from this shift.
Martinez shares with his 71,900 followers on the social media platform X that Bitcoin’s market dominance—which measures BTC's market cap relative to all other cryptocurrencies—is approaching the end of a rising wedge pattern.
This formation is typically viewed as a bearish indicator if the price falls below the key support line. If Bitcoin breaks this support, it could signal an opportunity for altcoins to take the lead in performance.
In addition to this, Martinez highlights the OTHERS chart, an index that tracks the value of all crypto assets excluding stablecoins and the top 10 coins by market cap. According to him, the OTHERS chart is breaking out of a falling wedge pattern.
This type of breakout often suggests that altcoins may experience a rise in value, as falling wedge patterns are generally seen as bullish signals for price reversals.
Things are getting interesting! Bitcoin dominance is showing signs of a potential breakdown from a rising wedge, while the altcoin market cap is breaking out of a falling wedge.
Altcoin Season is just around the corner!
At the time of writing, the OTHERS index is valued at $212.494 billion, which is comfortably above the resistance level, further supporting the potential for an upward trend in altcoin markets.
Martinez also turns his attention to Dogecoin, the largest memecoin by market capitalization. He believes DOGE is setting up for possible rallies in the near future. According to his analysis, Dogecoin is nearing a breakout, especially as the relative strength index (RSI), which measures an asset's momentum, suggests a trend reversal. This shift in momentum could signal the beginning of a bullish phase for DOGE.
Dogecoin is gearing up for a bullish breakout! And one of the two conditions has been achieved:
The RSI broke the descending trendline on the daily chart.
Now we need DOGE surging past the $0.11 resistance!
On the other hand, Martinez offers a warning regarding Solana (SOL), a prominent competitor to Ethereum (ETH). He cautions that Solana might experience a further drop of up to 40%, potentially declining to $85 if it fails to break through the $154 resistance level.
Martinez states, “Solana needs to push past the $154 level soon, as rejection at this point could trigger a significant correction, with $85 acting as the next key support level.”
Overall, Martinez's analysis paints a picture of an impending shift in the crypto market, with altcoins poised to take the spotlight while certain assets like Solana face critical resistance points.
