Popular altcoins suffered a harsh reversal on Sunday, Sep. 29 as the recent Bitcoin surge stalled a few points below $66,000.
Jasmy, Daddy Tate, and Reef reverse
JasmyCoin (JASMY), the popular Japanese coin, retreated to $0.02326, down by 8% from its highest level on Saturday.
Daddy Tate (DADDY), the meme coin associated with controversial social media personality Andrew Tate, fell to an intraday low of $0.1147. Reef (REEF) dropped to $0.0052.
Some of this month’s top gainers also dropped sharply — a sign that some traders were starting to take profits. Moo Deng (MOODENG), the viral hippo-themed meme coin, declined by 17% while LandWolf (WOLF) fell by over 10%.
You might also like: LandWolf, Moo Deng surge as Solana DEX volume jumps
As a result, the total market cap of all cryptocurrencies tracked by CoinGecko retreated by almost 2% to $2.4 trillion.
Still, cryptocurrencies have been some of the best assets this month. Bitcoin rose by over 20% from its lowest point during the month and remains about 10% below the all-time high. The rally explains why most altcoins have bounced back since in the last bullish cycles, many of these coins tend to do better.
Santiment warning
There are two possible reasons why altcoins like Jasmy, Reef, and Daddy Tate retreated. First, Santiment warned that Bitcoin may struggle to hit its all-time high, citing the rising bullish posts about Bitcoin on social media.
While bullish sentiment on social media is often seen as good, Santiment warned that markets historically move in the opposite direction of crowd expectations.
📊 If you're awaiting Bitcoin's new all-time high, it may need to wait until the crowd slows down their own expectations. There are currently 1.8 bullish posts toward BTC for every 1 bearish post. Markets historically always move the opposite direction of crowd's expectations. pic.twitter.com/ZxDxalgmzb
— Santiment (@santimentfeed) September 29, 2024
Technically, there are also concerns that Bitcoin may find resistance at the descending trendline that connects the highest swings since March. Failure to flip that level would likely push it substantially lower, dragging other altcoins with it.
On the positive side, a break above that level — as some analysts predict — will push it to the next resistance point at $70,000 followed by its all-time high.
Second, these tokens retreated because of profit-taking among investors because of the recent surge. At its highest point this month, Reef was up by over 1,018% from its lowest point. Similarly, Jasmy was up by 48% while Daddy Tate was up by 144%.
Historically, altcoins tend to retreat after staging a strong rally. For example, on-chain data shows that a Jasmy whale moved tokens worth $1.5 million to Coinbase. The other three wallets moved tokens with a combined value of $4.5 million to Coinbase in the last 24 hours.
Read more: Moo Deng spikes as FOMO pushes holders to a record high
