24.05.202118:47 Forex Analysis & Reviews: Major altcoins are recovering after the weekend crash: forecasts

The main cryptocurrencies again sank heavily in terms of indicators over the weekend due to the sale, which was arranged by market participants. Because of this, many altcoins have hit three-month lows. However, at the beginning of the new week, when the negative from China was completely won back, the indicators of cryptocurrencies crawled up again. Due to the rapid growth, the total cryptocurrency market capitalization increased by 16.5%, reaching $1.62 trillion.

The main altcoin began to recover its positions at a rapid pace and is already approaching a two-week high. ETH has risen in price by 25.5% per day with daily trading volumes of $81 billion, which indicates an increased demand for the asset. Given the narrower dynamics of price changes, the demand for buying a coin is much higher than for selling. Due to the favorable positions for new players to enter the ETH network, as well as the approaching next stage of the update, the ether is getting to the historical maximum faster than others. At the next stage of the update, miners' commissions should decrease, and the network bandwidth may also increase, which promises the asset a multiple increase in quotes. Judging by the horizontal charts, the cryptocurrency will approach the important milestone of $2,500 soon, after which the coin will roll back. ETH will likely try to gain a foothold behind this mark and approach another important milestone of $2,900, where strong market resistance is also concentrated.

The Ripple token, which broke through all the supports and turned out to be at the level of the February minimum, is also beginning to recover its positions. Although the fall in the asset was much stronger than ETH, XRP's growth is only 15% per day. The cryptocurrency is quoted at $0.851, while daily trading volumes remain low, which indicates a greater predisposition of players to other assets. Despite this, cryptocurrencies retain their audience, and now the quotes of the coin are at the most favorable line for the entry of new players. XRP/USD will soon climb to the dangerous $1,000 mark, and the coin will need a powerful impulse to overcome this mark.

LTC is recovering at about the same level as XRP, which has risen in price by 14% over the course of a day. The position of the cryptocurrency was seriously shaken over the weekend, and the coin slipped to 12th place in terms of capitalization with a result of $11 billion. The current rate of price growth suggests that the asset is still not of interest to large investors and is a tool for trading small traders. Soon, the cryptocurrency will focus on the performance of stronger altcoins and will try to overcome the $200 mark and gain a foothold above it.

Even though the market is showing growth, there are all prerequisites for subsequent jumps in the value of cryptocurrencies due to the constant flow of negative news from China. Recently it became known that Huobi is significantly reducing the supply of mining equipment, and some companies for the extraction of crypto assets are beginning to scale back production to move to safer countries. In addition, the last market downturn occurred on May 22-23, and large investors continue to campaign to reduce their presence in the cryptocurrency market in favor of more stable instruments. This is because a series of announcements related to the problems of mining companies will continue until the Chinese authorities seek a compromise with the market or the complete withdrawal of business from this country. Do not forget about the ambiguous position of the US regulator, which continues to butt with Ripple, and also launched an investigation into Musk's influence on the crypto market. Given all this, there is no reason to hope that the current growth in coin performance will be the beginning of an upward trend and, most likely, in the near future, the trend for sudden wide fluctuations in the range of 10% -15% of the total cryptocurrency market capitalization will continue.