Are altcoins breaking free from Bitcoin? Solana, BNB hold the clue
The post Are altcoins breaking free from Bitcoin? Solana, BNB hold the clue appeared on BitcoinEthereumNews.com.
Journalist Posted: November 17, 2024 Solana continued to remain volatile with its massive gains. BNB, on the other hand, was consolidating. After a week of massive gains for most of the altcoins, things slowed down in the past few days. However, things might turn volatile soon, if an analysis is to be believed. What are altcoins up to? Alphractal, a data analytics platform, posted an analysis on X using the Correlation Heatmap, which is a powerful tool for analyzing how dozens of altcoins behave compared to Bitcoin [BTC]. The analysis mentioned, “When the correlation approaches 1, it means altcoins are closely following Bitcoin’s price movements, whether rising or falling. On the other hand, values near 0 or negative indicate that altcoins are moving independently.” At press time, the correlation heatmap was moving towards the negative zone. This suggested that the crypto market could once again turn volatile. Source: X To check whether the above analysis could come true, AMBCrypto decided to look into Solana [SOL] and Binance Coin [BNB]. Assessing SOL and BNB’s road ahead Solana’s current state somewhat aligned with the aforementioned analysis, as it showed signs of high volatility ahead. For instance, as per Santiment’s data, SOL’s Weighted Sentiment increased sharply- a sign of rising bullish sentiment. In fact, AMBCrypto reported earlier that SOL’s Open Interest reached an all-time high. Whenever that happens, the chances of the ongoing price trend continuing are high. Source: Santiment On the other hand, BNB took a different route last week, as it saw a consolidation. As a result, its Weighted Sentiment dropped, meaning that investors’ confidence in the coin was waning. Nonetheless, there were chances of a bullish trend reversal, which seemed likely as BNB’s Open Interest also dipped. But, nothing can be said with utmost certainty as BNB’s technical indicator MACD…
Filed under: News - @ November 17, 2024 4:12 pm