Fantom (Migrated to Sonic)

Ethena

Date: Fri, Dec 20, 2024, 09:38 AM GMTOver the past 48 hours, the cryptocurrency market has been under significant selling pressure as Bitcoin (BTC) dropped to $95,000 after recently hitting a record high of $108,000. This decline comes amid growing market uncertainty following the Federal Reserve’s latest announcements.Amid Bitcoin’s retracement, altcoins are bearing the brunt of the sell-off, with Fantom (FTM) and Ethena (ENA) leading the losers&#39; list. Both coins have suffered over 20% declines in the last 24 hours, raising concerns among investors about the sustainability of altcoin rallies.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/31cdfc33c3f04876ab5295e62a9ce7ac.png" />Source: Coinmarketcap<h3 id="total-3-chart-analysis">Total 3 Chart Analysis</h3>The Total 3 market cap chart, which excludes Bitcoin and Ethereum, paints a concerning picture. Currently consolidating within a descending triangle pattern, the total altcoin market cap has fallen from its recent high of $1.08 trillion to $884 billion.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/aeffe608af06420a8bde0daadf520704.png" />Key support lies at $850 billion, and if this level is tested and holds, there is potential for a reversal that could spark a recovery rally in altcoins. However, if this support breaks, further downside could ensue.From a technical perspective, the MACD indicator is showing bearish momentum, while the RSI has dipped into oversold territory. These signals suggest that while selling pressure remains strong, a potential bounce could be on the horizon if the market finds solid support.<h3 id="btc-dominance-chart-analysis">BTC Dominance Chart Analysis</h3>Bitcoin’s dominance over the market has risen sharply, standing at 59.77%, after bouncing back from the lower trendline support of 54.50%. This sharp rise indicates a shift of capital away from altcoins back into Bitcoin during the current market turbulence.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/9f18afcbb5764429bed9302a81718881.png" />The dominance is now testing a significant resistance zone near 60%. If BTC dominance gets rejected from this level, it could pave the way for an altcoin recovery, as traders might rotate funds back into altcoins.However, if BTC dominance breaks above 60%, it could signal continued weakness in the altcoin market as Bitcoin attracts the lion’s share of capital.<h3 id="will-the-downtrend-reverse">Will the Downtrend Reverse?</h3>For altcoins to recover from the ongoing sell-off, two conditions must align:<ol><li>The Total 3 market cap must find support at $850 billion and reverse upward.</li><li>Bitcoin Dominance must face rejection at its current resistance at 60%, potentially falling back toward the lower support level of 54.50%.</li></ol>While the charts suggest potential for a rebound, much depends on external factors, including Bitcoin&#39;s price stability and broader market sentiment following the Federal Reserve’s recent announcements.Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.Also Read: <a href="https://coinsprobe.com/popcat-hits-key-long-term-support-following-major-correction-whats-ahead/" rel="noopener noreferrer nofollow">POPCAT Hits Key Long-Term Support Following Major Correction: What’s Ahead?</a>

Altcoins Decline Continues: FTM and ENA Face Heavy Losses – Will the Downtrend Reverse?

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