• Latest
  • Trending
SSR Signals the Upcoming Altcoin Season: On-Chain Analysis

SSR Signals the Upcoming Altcoin Season: On-Chain Analysis

March 13, 2022
FutureU Launches New Basics of Ethereum Programming course

Argo Blockchain Class Action Lawsuit Announced: Johnson Fistel Encourages Shareholders to Submit Their Information

January 27, 2023
Is a Breakout in BCH possible? A Technical Analysis of the … – The Coin Republic

Is a Breakout in BCH possible? A Technical Analysis of the … – The Coin Republic

January 27, 2023
What Is The Difference Between Proof Of Work And Proof Of Stake? A Look At Dogecoin And Big Eyes Coin

What Is The Difference Between Proof Of Work And Proof Of Stake? A Look At Dogecoin And Big Eyes Coin

January 27, 2023
Leading Crypto Analyst Dives Into Bitcoin and Ethereum, Says Two Altcoins Are ‘Going Through the Roof’

Leading Crypto Analyst Dives Into Bitcoin and Ethereum, Says Two Altcoins Are ‘Going Through the Roof’

January 26, 2023
Dogecoin (DOGE) Soars 8%, But This Metric Suggests Pullback

Dogecoin (DOGE) Soars 8%, But This Metric Suggests Pullback

January 26, 2023
Binance stablecoin BUSD sees a sharp market cap drop amid solvency and mismanagement worries

Binance stablecoin BUSD sees a sharp market cap drop amid solvency and mismanagement worries

January 26, 2023
Here’s why Bitcoin price could correct after the US government resolves the debt limit impasse

Here’s why Bitcoin price could correct after the US government resolves the debt limit impasse

January 26, 2023
Rumor is BlackRock, the World’s Largest Asset Manager, is Preparing to Offer … – Latest Tweet by Litecoin

‘Most Large Cryptocurrencies Decrease as Litecoin Declines’ – Story by @MarketWatch … – Latest Tweet by Litecoin

January 26, 2023
Bitcoin can still crack $50K if gold correlation continues — Chart

Bitcoin can still crack $50K if gold correlation continues — Chart

January 26, 2023
FTX legal team calls for Sam Bankman-Fried’s family to answer questions under oath: Report

FTX legal team calls for Sam Bankman-Fried’s family to answer questions under oath: Report

January 26, 2023
Here’s Recent Update in XRP Lawsuit

Here’s Recent Update in XRP Lawsuit

January 26, 2023
US Justice Department seizes website of prolific ransomware gang Hive

US Justice Department seizes website of prolific ransomware gang Hive

January 26, 2023
Friday, January 27, 2023
Retail
  • Home
  • Bitcoin
  • Cryptocurrency
  • Ethereum
  • Blockchain
  • Altcoin
  • ADA
  • Dogecoin
  • Litecoin
  • XRP
  • Regulation
  • Market And Analysis
No Result
View All Result
The Crypto Days
No Result
View All Result

SSR Signals the Upcoming Altcoin Season: On-Chain Analysis

by marcell.major
March 13, 2022
in Altcoin
0


In today’s on-chain analysis, BeInCrypto compares the Stablecoin Supply Ratio (SSR) and its oscillator to the altcoin market capitalization chart. The goal is to try to determine whether to expect the arrival of the first altcoin season in 2022.

In today’s on-chain analysis, BeInCrypto compares the Stablecoin Supply Ratio (SSR) and its oscillator to the altcoin market capitalization chart. The goal is to try to determine whether to expect the arrival of the first altcoin season in 2022.

If you look at the charts of WAVES, which pumped 285% in 16 days, or LUNA, which just set a new ATH, it seems like these are the first harbingers of this year’s altcoin season. However, despite these exceptions, most altcoins are in a long-term downtrend – against both USD and BTC.

Nevertheless, the chart of altcoin market capitalization (TOTAL2) is approaching a long-term, rising line of support. A bounce from it could initiate a trend reversal and the start of a new altcoin season. Moreover, the Stablecoin Supply Ratio provides signals that after a period of Bitcoin consolidation, capital may soon flow into riskier altcoins.

Long-term support and resistance for TOTAL2

The TOTAL2 chart has been in a downtrend since the all-time high (ATH) of $1.07 trillion set on November 10, 2021. Since then, the price has followed a descending resistance line that has rejected every breakout attempt at least 6 times (red circles). The correction has now lasted 122 days and TOTAL2 has declined by 43% reaching $971 billion today.

On the other hand, the decline has led to a confirmation of the rising support line again, which has been in place since February 2021. Previously, this line served as support in June and July 2021. A bounce from it led to the aforementioned ATH. In total, this line has already been validated as support 4 times (green circles).

TOTAL2 chart by Tradingview

Cryptocurrency trader @CryptoPoseidonn tweeted a chart of TOTAL2, indicating a possible major breakout. He compares the summer 2021 correction with the current situation. The trader expects that a breakout of the falling resistance line, followed by its validation as support, will lead to a new altcoin season.

Source: Twitter

A complimentary look is provided by a chart of the altcoin season indicator, regularly updated by BlockchainCenter. The indicator was recently around the value of 25, which is interpreted as a Bitcoin season. During this period, altcoins lose against BTC and most often against USD as well.

Source: www.blockchaincenter.net

The previous two occasions (highlighted) when the chart fell below 25 occurred between November 2020-January 2021 and July-August 2021. These correlate with periods when TOTAL2 was experiencing a correction (if BTC was falling) or a sideways trend (if BTC was rising). However, in both cases, a return to higher values above 25 was a signal for a major altcoin season.

SSR signals the start of altcoin season

One of the leading on-chain analysts @Negentropic_ has linked the possibility of the arrival of altcoin season to the Stablecoin Supply Ratio (SSR) oscillator. In a double chart posted on Twitter, he illustrates the positive correlation between the two charts. The analyst states:

“More stablecoins converted to #Bitcoin as the price consolidates. Once the rally begins, money will flow to riskier altcoins.”

Source: Twitter

On the SSR oscillator chart from Glassnode, we do indeed see an ascending support line that goes back to the crash of the COVID-19 pandemic in March 2020. Each tap of this support line correlated with a bottom in the Bitcoin price.

This support also marked the peak points of cash flow into risk-off assets. Investors then recovered and opened back up to risk-on assets, leading to a new altcoin season.

SSR oscillator chart Glassnode

The basic SSR chart, which we covered at BeInCrypto back in January, provides a similar signal. For more than two months, the SSR chart has been consolidating near the lower 200-day Bollinger band. Historically, this area has been a period of good buying opportunities, after which Bitcoin and altcoin prices have risen rapidly (green areas).

SSR chart by Glassnode

BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.





Source link

YOU MAY ALSO LIKE

Binance stablecoin BUSD sees a sharp market cap drop amid solvency and mismanagement worries

Aptos Price Prediction as APT Pumps Up 37% in 24 Hours – Is Aptos the New Solana?

Tags: AltcoinanalysisOnchainseasonsignalsSSRUpcoming
ShareTweetPin

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

No Result
View All Result

Recent News

FutureU Launches New Basics of Ethereum Programming course

Argo Blockchain Class Action Lawsuit Announced: Johnson Fistel Encourages Shareholders to Submit Their Information

January 27, 2023
Is a Breakout in BCH possible? A Technical Analysis of the … – The Coin Republic

Is a Breakout in BCH possible? A Technical Analysis of the … – The Coin Republic

January 27, 2023
What Is The Difference Between Proof Of Work And Proof Of Stake? A Look At Dogecoin And Big Eyes Coin

What Is The Difference Between Proof Of Work And Proof Of Stake? A Look At Dogecoin And Big Eyes Coin

January 27, 2023

Recent News

FutureU Launches New Basics of Ethereum Programming course

Argo Blockchain Class Action Lawsuit Announced: Johnson Fistel Encourages Shareholders to Submit Their Information

January 27, 2023
Is a Breakout in BCH possible? A Technical Analysis of the … – The Coin Republic

Is a Breakout in BCH possible? A Technical Analysis of the … – The Coin Republic

January 27, 2023
What Is The Difference Between Proof Of Work And Proof Of Stake? A Look At Dogecoin And Big Eyes Coin

What Is The Difference Between Proof Of Work And Proof Of Stake? A Look At Dogecoin And Big Eyes Coin

January 27, 2023

Categories

  • ADA
  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Dogecoin
  • Ethereum
  • Litecoin
  • Market And Analysis
  • Regulation
  • XRP

Follow Us

Find Via Tags

Ada Altcoin Altcoins analysis Analyst BIG Binance Bitcoin blockchain BNB BTC Buy Cardano coin Cointelegraph crypto Cryptocurrency DOGE Dogecoin ETH Ethereum eyes FTX Heres Inu Investors Latest Litecoin LTC Market News Price rally Report Ripple SEC Shiba SOL Solana today Token Top trading week XRP

© 2021 The Crypto Days

No Result
View All Result
  • Home
  • Bitcoin
  • Cryptocurrency
  • Ethereum
  • Blockchain
  • Altcoin
  • ADA
  • Dogecoin
  • Litecoin
  • XRP
  • Regulation
  • Market And Analysis

© 2021 The Crypto Days