Altcoins are gathering momentum as the U.S. Federal Reserve cuts interest rates by 50 basis points.
The decision has sparked activity across the crypto markets, with altcoins like Sui and Fantom leading the charge.
On-chain Data Indicates Imminent Altcoin Rally
Santiment, a leading market intelligence platform, has reported a significant shift in the altcoin market. According to Santiment’s analysis, various altcoins are demonstrating bullish tendencies, indicating that they may be on the verge of a rally. Among these, Fantom (FTM) and Sui (SUI) have started to show notable upward trends.
Large investors, referred to as ‘whales’, have intensified their activities around several altcoins. This increase is considered a bullish signal, possibly acting as a precursor for these altcoins’ growth in the upcoming months. Santiment highlighted that altcoins such as Stargate (STG), GMX, Big Time (BIGTIME), Origin Token (OGN), GALA, and Pixels (PIXEL) are experiencing heightened whale transaction activities.
Fantom (FTM) Sees Significant Growth
Fantom, known for its directed acyclic graph (DAG) smart contract platform, has displayed strong growth over the past 24 hours. The token surged by 16.29% according to CoinMarketCap, reaching a trading price of $0.6642. This rise exceeded the significant resistance level of $0.53, aligning with the 50 weekly Moving Average (MA).
Fantom’s upcoming upgrade to ‘Sonic’ will replace the FTM token with the ‘S’ token. This new token will be utilised within the ecosystem for various functions, including transaction fees, staking, validating, and governance participation.
Sui (SUI) Price Movement
The Sui network, a rapidly growing layer 1 blockchain, has demonstrated remarkable performance in the recent month.
Over the last 30 days, the SUI token has surged by 51%, and this growth extends to a 34.72% increase over the week. Considering its 24-hour trading period, SUI experienced a 15.14% rise, leading to a trading price of $1.38.
The rapid expansion of the Sui network stems primarily from its advanced ecosystem. Current on-chain data shows that Sui holds a total value locked (TVL) of $797 million, alongside a stablecoin market cap of over $360 million.
Whale Activity and Its Impact
The increase in whale activity within the altcoin sphere is noteworthy. Whale transactions in STG and GMX have surged respectively by 3,600% and 2,300% over the last 24 hours. Other altcoins such as BIGTIME, OGN, GALA, and PIXEL recorded substantial increases in whale activity, underscoring growing investor interest and confidence.
The impact of whales is significant, as their trading actions can heavily influence market trends. With their apparent focus on select altcoins, market analysts are observing these movements closely, as they may herald a stronger upward movement for the altcoin market at large.
Federal Reserve Interest Rate Decision
The decision by the U.S. Federal Reserve to cut interest rates by 50 basis points the first such move in four years, has reverberated throughout the cryptocurrency market.
This policy change has boosted investor confidence, resulting in a surge in the total crypto market valuation by over 3%, reaching $2.14 trillion. Bitcoin, the dominant cryptocurrency, crossed the $62k mark, reflecting increased investor interest.
Market Outlook for Altcoins
The current market conditions suggest a favourable outlook for altcoins. With increasing whale activity and a positive sentiment from the Federal Reserve’s decisions, there is a strong potential for sustained growth across various altcoins.
Investors are advised to keep an eye on emerging trends within the altcoin market, as the potential for further gains remains substantial. Analysts are particularly focused on altcoins like SUI and FTM, given their recent performance and emerging ecosystem developments.
Concluding Insights
The cryptocurrency market is poised for a period of growth, supported by favourable economic conditions and emerging data suggesting an altcoin uptrend.
As the Federal Reserve’s policy continues to influence market dynamics, investors and analysts alike will be watching closely to understand how these changes further impact the crypto landscape.
Altcoins present promising opportunities amid large-scale crypto market shifts.
Investors are optimistic about continued gains as the market adapts to new economic landscapes.
