Following the recent announcement regarding XRP Coin, many altcoins have experienced significant price increases. However, renowned analyst Benjamin Cowen has issued a warning for certain altcoins. If Cowen’s prediction is correct, investors who take advantage of this situation could benefit. The question is, which direction will the price movement take?
Polkadot, Cardano, and Avalanche Analysis
Cowen, a respected commentator closely followed by investors, predicts short-term rallies for a handful of altcoins, including Ethereum (ETH) competitors Polkadot (DOT), Cardano (ADA), and Avalanche (AVAX). During a recent strategy session, crypto trader Benjamin Cowen suggests that altcoins may follow a pattern of significant increases before retracing to new lows in 2023, similar to what happened in 2018.
According to Cowen, the current altcoin rally will not be any different from previous ones and will likely cease when Bitcoin‘s dominance level is reestablished. Investors closely monitor Bitcoin Dominance (BTC.D) to determine the percentage of total crypto market value attributed to Bitcoin.
Altcoin Predictions by Crypto Analysts
The increase in BTC.D results in greater losses for altcoins. This was evident in the second week of June when altcoin investors experienced double-digit losses due to a shift from altcoins to Bitcoin following the SEC’s lawsuits. Cowen stated:
“In my opinion, until proven otherwise, the altcoin market is no different from what we have seen before. It’s not different. The altcoin market rallied against Bitcoin in 2018, rallied against Bitcoin in 2019, but by the end of 2019, it retraced up to 25% of Bitcoin’s market value… My prediction is that the rally in Bitcoin dominance will eventually continue. It may test levels between 49% to 50%, but I believe it will continue in the long run because of the decline in net liquidity.”
According to Cowen, altcoins such as Polkadot, Cardano, Avalanche, and Polygon are currently facing resistance at their 20-week simple moving averages (SMA). Last week, Cowen predicted that altcoins would be “crushed” due to Bitcoin’s dominance level appearing ready to rise.
