The major altcoins didn’t fully take advantage of the market getting better, some like Celestia, Arbitrum, and Sei did really well. They had big price increases this week, and it looks like they’ll keep up that momentum in the next week.
In the past week, the crypto market recovered from a big crash of nearly $600 million, bringing Bitcoin back to around $45K, close to where it was before the crash. Altcoins also gained, but they didn’t follow the same path as Bitcoin because its dominance increased.
Dominance Dynamics: Bitcoin Gains, Altcoins Struggle Post-Crash
Following the recent market recovery, both Bitcoin and various altcoins have bounced back from their crash levels. However, a clear distinction emerges in their dominance trends. In the past week, Bitcoin’s dominance steadily increased, reaching 53.6% with minimal fluctuations. On the flip side, altcoins faced a decline in dominance, hitting a weekly low of 12.1%.
Before the crash on January 3rd, the altcoin market seemed poised for a significant phase known as ‘altcoin season.’ The altcoin dominance index reached a more than one-year high, trading at level 69, close to the threshold of 75 that typically signals the onset of altcoin season. Since that peak, the index has been on a downward trend, currently trading at 59. This decline weakens the possibility of a robust bull run in the market, especially with the looming decision from the SEC on a spot Bitcoin ETF.
Celestia (TIA) Price Analysis: Uptrend Consolidation and Bullish Signals
Celestia’s price has recently shown a consolidating uptrend, hovering around the $14 level. A positive sign is that the price consistently stays above the 50% Fibonacci retracement level, providing a stable foundation.
Celestia (TIA) Price Chart – Source: TradingView
Adding to the optimism is the recent all-time high on January 5th, supported by both the EMA20 and the Relative Strength Index (RSI) indicating potential for further surges. However, caution is advised as rejections around the $14-$17 range may dampen the bullish momentum.
Looking ahead, if the price maintains above the 20-day EMA, there’s a chance for buyers to drive TIA towards the critical resistance at $17. Breaking through this level could open the path for a new high for the altcoin in the upcoming week.
Arbitrum (ARB) Price Analysis: Support Battles and Recovery Hopes
Arbitrum’s price recently dipped below the 20-day Exponential Moving Average (EMA), but the bears couldn’t secure a close below the crucial support level. Currently, buyers are actively defending the ascending support line.
Arbitrum (ARB) Price Chart – Source: TradingView
In the upcoming hours, sellers might try testing the support line, and if it breaks, there could be long-liquidations. However, there’s notable buying pressure as bulls strive for a recovery above the EMA20 trend line. If there’s a surge above the 20-day EMA, it could heighten buying pressure, potentially pushing the ARB price above $2.1 in the coming week.
Sei Price Analysis: Ascending Channel and Resistance Challenge
Sei’s price has been following an ascending channel pattern for the past few days, encountering rejection at $0.88. Currently trading below EMA20, with the RSI holding below the midline, sellers are eyeing a retest of the ascending support line.
Sei Price Chart – Source: TradingView
Should bulls successfully keep the price above moving averages, buyers may target the $0.88 level. In such a scenario, there’s potential for a surge toward $1 in the upcoming week.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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