- Binance Coin, PancakeSwap, Theta and XRP witnessed a spike in positive sentiment among holders.
- Ethereum Merge could open the floodgates for altcoin season 2022, a massive rally of altcoins.
- The correction in altcoin price charts is similar to the one witnessed in 2018-19 before a double-digit rally in top cryptocurrencies.
Positive sentiment among Binance Coin, PancakeSwap, Theta and XRP holders has increased in light of what could become the new altcoin season. Analysts are predicting massive gains in altcoins, following Ethereum’s lead after the Merge is completed.
Also read: Ethereum price: Chandler Guo, Justin Sun battle Vitalik Buterin to keep ETH POW alive
Ethereum Merge could open floodgates to altcoin season
Ethereum, the largest altcoin in the crypto ecosystem, is heading towards its most anticipated event – the Merge. Ethereum developers announced the final date of the event. The two-part procedure is scheduled to begin on September 9.
The Merge will trigger Ethereum’s transition from proof-of-work to proof-of-stake, a consensus mechanism that is key to the altcoin’s holders and the crypto ecosystem. Despite the uncertainty surrounding the outcome of the Merge and the narratives of a hard fork in Ethereum, analysts believe the event could trigger a massive rally in altcoins. According to the official blog post, the Merge upgrade will be complete by September 20. The two parts of the event will reach completion between September 10 and 20.
The altcoin season is a period where altcoins steadily outperform Bitcoin. While this event does not guarantee profits due to mass volatility, altcoin season is considered the ideal time for traders to diversify their portfolios. The altcoin season index powered by the blockchain center currently reads 94 on a scale of 0 to 100. If the index’s value climbs past 75, it is considered that the altcoin season has started.
Altcoin Season Index from Blockchain Center
Positive sentiment among traders on BNB, Theta, XRP, PancakeSwap
Based on data from crypto intelligence tracker Santiment, holders have a positive sentiment on Binance Coin, Pancake Swap, Theta and XRP. This coincides with the beginning of the altcoin season and implies a price rally in cryptocurrencies likely once the Ethereum Merge is successful.
Santiment uses the metric “weighted sentiment” to score trader sentiment towards a cryptocurrency. This considers the on-chain metrics and social sentiment among crypto traders holding a given asset.
The weighted sentiment is the highest for Tron (TRX), Binance Coin (BNB), PancakeSwap (CAKE), Theta (THETA) and XRP. Check the chart below for one-day and seven-day average sentiment among holders.
Weighted Sentiment of TRX, BNB, CAKE, THETA, XRP
Analysts predict massive altcoin season rally, breakout coming soon?
Analysts at Stockmoney Lizards, a Twitter handle that presents crypto analysis, believe there are several similarities between the current correction in altcoins and previous ones from 2018-2021. These similarities imply that a breakout is in the charts for altcoins in the ongoing cycle.
In the chart below, analysts have highlighted the similarities and predicted a massive uptick in the overall crypto market capitalization.
Comparing total market capitalization 2018-21, 2020-22
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.