AltLayer, an open and decentralized protocol for rollups, has seen a sharp decline over the past 24-hours. The altcoin is hovering below the $0.15 support level amid a broader bearish market trend. AltLayer price is trading at $0.1325 during a U.S. trading session, marking a 7.99% decrease. 

The 24-hour trading volume has spiked by 21%, reaching $36 million. According to CoinMarketCap data, AltLayer’s market cap has also fallen by 8% to $145 million, reflecting investor hesitation in a volatile market environment.

AltLayer Price Dips Below Key Support Level Amid Market Uncertainty

Over the past week, Altlayer (ALT) has seen a significant drop of 11.41% in its value. The cryptocurrency is trading downward, experiencing fluctuations within a narrow range between $0.1274 and $0.1464 over the last 24 hours. 

From its peak in March 2024, when it reached an all-time high of $0.6881, the token has substantially declined by 80.%. This recent downturn in value mirrors the broader volatility and challenges the cryptocurrency market faces.

Looking at the monthly chart for Altlayer (ALT), the cryptocurrency has experienced a significant decrease, shedding over 31% of its value in the past month. This downtrend culminated in hitting an all-time low of $0.1138 on July 8, 2024, barely 18 days ago. 

Potential Price Scenarios for ALT Amid Market Volatility

AltLayer is experiencing a pronounced decline in a bearish market. If this trend persists, its token will likely stabilize at $0.13. 

If market conditions deteriorate further, there’s a risk that its value could decrease to $0.12, reflecting a stronger bearish impact. A more severe downturn could potentially push the price down to $0.1.

Conversely, increasing investor confidence might propel ALT into a bullish phase. A reversal in market sentiment could see AltLayer breaking through the $0.15 resistance level. Continuing on this path, the cryptocurrency might reach $0.2 and could target a high of $0.5 in the foreseeable future.

Upcoming $115M Token Unlock to Test ALT Stability

According to data from an upcoming unlock event, the cryptocurrency market is likely to experience significant volatility following the scheduled release of $115 million worth of tokens. 

The unlock is set for 10:00 AM UTC on January 25, 2025, with 240.10 million ALT tokens set to be released. This represents 10.39% of the token’s current circulating supply, contributing to market concerns over potential price impacts.

The recent data indicates that only 23% of the total token supply has been unlocked so far, with 76.89% remaining locked. This gradual release strategy might be a stabilizing factor, but the substantial volume of the upcoming release raises uncertainties.

Technical Indicators Show Bearish Trends for ALT

The daily technical indicators for AtlLayer suggest a continued bearish trend in the market. The Moving Average Convergence Divergence (MACD) indicator shows a narrowing between the MACD and signal lines, indicating potential decreasing bearish momentum. 

AltLayer Price By TradingView

The Relative Strength Index (RSI) is hovering near 37.14, close to the oversold territory but not conclusive enough to predict a reversal. This level indicates that while the market might be nearing oversold conditions.

The post AltLayer Price Likely to Experience Volatility with Upcoming $115 Million Token Release appeared first on CoinGape.

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Filed under: News - @ July 25, 2024 6:22 pm