Blockchain intelligence leader Santiment shared expectations about altcoins in a tweet today. It revealed that there were significant decreases in the market values of various cryptocurrencies. Alongside this dire news, the firm also illuminated a unique opportunity in the market by mathematically defining current returns as residing in a historic opportunity zone.
Santiment foresees opportunity for altcoins
In a stunning announcement earlier today, Santiment revealed that the market values of multiple cryptocurrencies have experienced significant drops over the past week. The tweet depicts a sharp split among traders. While some express optimism for a rapid recovery, others are preparing for further price declines in the market. Despite the lack of consensus among traders on the direction of the market for the next week, Santiment provided information that cryptocurrencies are mathematically positioned in a historical opportunity zone. Furthermore, the company’s data highlighted that altcoins are suffering from undervaluation due to the recent market turmoil.
📊 Market caps have fallen considerably over the past week, and traders are very polarized. Many believe a quick recovery is coming, while others see this as just the beginning of the dump. But undeniably, average #crypto returns are in a mathematically historic opportunity zone. pic.twitter.com/oVlLQ6ZuB1
— Santiment (@santimentfeed) August 19, 2023
CoinMarketCap data shows that the total value of the global cryptocurrency market is currently an estimated $1.05 trillion. This value reflected a 1.25% decrease in the last 24 hours. Along with the drop in value, the cryptocurrency market also reported a staggering 41.56% drop in 24-hour trading volume. The collective cryptocurrency market cap, often referred to as TOTAL, has surpassed the critical support level of $1.08 trillion in the past 48 hours. As a result, TOTAL faces the threat of falling below the crucial $1 trillion level. If this bearish trend continues, the next key support level, $971.78 billion, could be tested next week.
What does the total cryptocurrency value of the coins indicate?
However, a glimmer of optimism is emerging from TOTAL’s daily chart, which shows that cryptocurrencies are currently trading below the lower range of the Bollinger Bands (BBANDS) indicator. This indicates the potential for a rebound in the technical indicator range in the coming days. This optimistic outlook is reinforced by TOTAL’s recent performance showing higher lows in the last two trading days. If this trend continues and a new high low is formed today, the market may embark on a recovery journey towards the $1.08 trillion level.
However, the bullish forecast could collapse if TOTAL drops below $1,012 trillion during today’s trading session. Such a development would potentially cause the value of the cryptocurrency market to drop to the previously mentioned $971.78 billion support level. As uncertainty continues to grip the cryptocurrency world, investors and traders continue to monitor these fluctuations closely to make the right decisions in an environment where crypto assets evolve.
