The popular altcoins suffered a harsh reversal on Sunday, September 29, as Bitcoin’s recent rally stalled a few points below $66,000.
Jasmi, Daddy Tate, and Reeve reflect
JasmyCoin (JASMY), the popular Japanese cryptocurrency, fell to $0.02326, down 8% from its high on Saturday.
Daddy Tate (DADDY), linked to controversial social media personality Andrew Tate, fell to an intraday low of $0.1147. Reef (REEF) price fell to $0.0052.
A number of this month’s top gainers also fell sharply, a sign that some traders are starting to take profits. Moo Deng (MOODENG), the viral hippopotamus-themed coin, fell 17% while LandWolf (WOLF) fell more than 10%.
As a result, the total market capitalization of all cryptocurrencies is tracked Queen Gekko It fell by about 2% to $2.4 trillion.
However, cryptocurrencies remained one of the best assets this month. Bitcoin is up more than 20% from its lowest point during the month, and remains about 10% below its all-time high. The rally explains why most altcoins bounce, as many of these coins tend to perform better in recent bull cycles.
Sentiment Warning
There are two possible reasons for the decline of altcoins such as Jasmy, Reef, and Daddy Tate. First, Santiment warned that Bitcoin may struggle to reach all-time highs, citing increasingly bullish posts about Bitcoin on social media.
While bullish sentiment on social media is often viewed as good, Santiment warned that markets historically move in the opposite direction to crowd expectations.
Technically, there are also concerns that Bitcoin could find resistance at the downtrend line that connects the highest volatility since March. Failure to reverse this level would likely cause it to fall significantly, dragging other altcoins along with it.
On the positive side, a break above this level – as some analysts expect – would push it to the next resistance point at $70,000 followed by an all-time high.
Secondly, these tokens have fallen due to profit taking among investors due to the recent rally. At its highest point this month, Reef stock was up more than 1,018% from its lowest point. Likewise, Jasmy’s stock is up 48% while Daddy Tate’s stock is up 144%.
Historically, altcoins tend to pull back after making a strong rally. For example, Data appears on the chain Jasmy the whale transferred $1.5 million worth of tokens to Coinbase. The other three wallets transferred tokens worth a combined $4.5 million to Coinbase in the past 24 hours.