Altcoins have been in a prolonged downtrend ever since the ICO bubble burst at the start of 2018, but a recovery may be on the cards in Q4 of this year according to eToro market analyst Simon Peters.
This year has been a rollercoaster for all global capital markets, with major crashes in cryptocurrencies and stock markets being followed by a triumphant rally to the upside.
And while major assets have begun to bounce back, altcoins like XRP, Litecoin and Ethereum are still more than 90% lower than their respective all-time highs.
There has been a hint of a relief rally, but not an alt season, in 2020 with Tezos and Cardano performing well, with Peters believing that news coverage of these projects will wildly effect price action.
Peters commented: “Much has been written about Alt Season, and understandably so, as Tezos, ADA and Chainlink have all been flying. Given the lower liquidity that exists with these coins, often a small announcement of progress or a positive piece of newsflow can affect the price to a fairly large degree. So what has driven the performance of some of these alts?
“Cardano’s ADA continues to exhibit some strong price action, as the Shelley upgrades continue apace. Chainlink recently hit an all-time high, surpassing the $5 mark, as news emerged that China’s Blockchain Service Network launched 135 public city notes.”
Peters then points out that Bitcoin, despite it having bullish sentiment following the halving, has struggled to make consistent gains to the upside.
“Currently [Bitcoin] is sitting at $9,280, it has yet to see the volatility that has permeated through ADA and Tezos.” He added.
“The hashrate is back at an all time high, which many believe will precede a price rise. I personally don’t take this view, although I do appreciate that these hashrate increases do show increased efficiency in the system, thus leading to less overheads for miners and less of a reason to sell.”
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