Bitcoin has climbed above the $40,000 mark after quite some time. This important milestone helped the total altcoin market capitalization surpass a key level.
Furthermore, on December 3, analyst Rekt Capital highlighted that the altcoin market capitalization (excluding the top 10 cryptocurrencies) has reached a critical threshold.
Specifically, this market capitalization has turned resistance into new support.
Source: Rekt Capital
Are altcoins planning a price increase?
To get a glimpse of how the top altcoins are impacting the entire market, it is imperative to look at how coins like ETH are performing to better understand what will happen in the coming days. .
According to CoinMarketCap, ETH price increased more than 10% in the past 7 days. At the time of writing, it is trading at $2,226 with a market capitalization of over $267 billion.
The altcoin king's trading volume also skyrocketed in the past 24 hours, serving as a foundation for the bullish trend.
CryptoQuant data analysis shows derivatives investors continue to buy ETH at higher prices at the time of writing because of the high Funding Rate.
In addition, the Taker Buy Sell Ratio is also green, which means that buying sentiment prevails in the derivatives market.
Source: CryptoQuant
Other bullish metrics include Ethereum's Active Addresses and Transfer Volume, which have also improved recently. However, Supply on the exchange has caused concern.
On the other hand, ETH Exchange Reserves increased. Furthermore, the total net flow through the exchange at the time of writing is higher than the average of the past 7 days, indicating that the selling pressure on ETH is very high.
Source: CryptoQuant
XRP also shows a lot of promise
While ETH price increased sharply, XRP - the 5th largest cryptocurrency in terms of capitalization also showed signs of price increase. Prices increased nearly 3% compared to last week. At the time of writing, it is trading at $0.61 with a market capitalization of over $33 billion.
Analysts have been checking XRP's daily chart to see if it continues to rise. This could also impact the overall altcoin market somewhat considering the coin's large market cap.
The MACD shows the current tug-of-war between bulls and bears. Bollinger Bands indicate XRP price is in a less volatile zone, reducing the chances of a further move north.
However, the Relative Strength Index (RSI) increased and crossed above the neutral mark. The money flow index (MFI) also follows the same trend, showing continued uptrend.
Source: TradingView
Memecoin is also in the game?
Memecoin has a large presence in the cryptocurrency space, mainly due to its widespread popularity. Therefore, if altcoins are preparing for a bull run, one must also look at the meme space to see how they are doing.
We'll start with DOGE, as it is the largest memecoin by market capitalization. Notably, DOGE has pushed the price up more than 15% in just the past 7 days.
At the time of writing, it is trading at $0.089 with a market capitalization of over $12.7 billion. Thanks to rising prices, DOGE's market dominance increased by 11%. Another bullish metric is AltRank which improved last week.
Source: LunarCrush
SHIB is still in the spotlight this year thanks to the much-awaited Shibarium launch event. This memecoin price has increased by 11.7% in the past week.
However, the standout is PEPE, as the memecoin recorded double-digit growth last week. According to CoinMarketCap, it has increased more than 33% in just 7 days and is trading at $0.0000014.
Therefore, when looking at the performance of the above mentioned memecoins, it will be interesting to see how they played a role in kickstarting the altcoin bull run.
Keep an eye on Bitcoin
While looking at the state of altcoins is imperative to assessing the future, Bitcoin also plays an important role in shaping the market. Since it is the largest cryptocurrency, its price trend affects the performance of other cryptocurrencies to a certain extent.
Interestingly, Bitcoin recently surpassed $40,000 for the first time in several months. Thanks to that, the crypto king's social dominance rate is increasing. Positive sentiment around this coin also increased strongly.
Source: Santiment
At the time of writing, BTC is trading at $41,732 with a market capitalization of over $816 billion. Considering the state of the entire market, the possibility of an altcoin bull run seems very likely.
However, the cryptocurrency market is notoriously unpredictable, so it will be interesting to see the overall trend in the coming weeks.
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