4 Top Layer 1 Altcoins Surging Amid Bitcoin Miner Capitulation Relief
In June, Layer 1 altcoins faced a notable downturn alongside Bitcoin’s drop to $60,000. This decline was primarily fueled by Bitcoin miners selling off to cover operational expenses and significant outflows from U.S.-based ETFs.
Fortunately, the selling pressure began easing last week, enabling Bitcoin to recover from the $60k mark and allowing altcoins to establish local bottoms. A well-known trader, CryptoDan, highlighted a positive shift that could signal a bullish rally for the market in the third quarter of 2024. In a recent post, it was mentioned that, “The quantity of Bitcoin sent by miners to exchanges for sale has decreased significantly since May.” Additionally, it was noted that the volume of the OTC trading desk used by miners for selling purposes had accumulated until June 29th, when it was fully consumed, indicating potential buyer interest.
Given these developments, investors may want to consider top Layer 1 cryptos for potential gains in the upcoming post-correction rally. Solana (SOL) is a high-performance blockchain designed to support decentralized applications (DApps) and cryptocurrencies. The Solana price has been trading within a symmetrical triangle pattern, with a recent rebound from the lower trendline at $122 to $148.2, aided by a recent filing for a Solana ETF with the US SEC.
Cardano (ADA), a proof-of-stake blockchain platform, experienced a correction within a falling wedge pattern, dropping from $0.81 to $0.357. The ADA price surged by 13% to $0.4, with potential for a breakout from the pattern to surpass the $0.8 mark.
Avalanche (AVAX) is a high-performance blockchain platform known for its scalability solutions. Rumors of a spot AVAX ETF positively impacted its value, with a bullish breakout from a falling wedge pattern suggesting a potential retest of its previous high of $65.37.
Hedera (HBAR) utilizes the hashgraph consensus algorithm, offering an alternative to traditional blockchain technology. The HBAR price has been consolidating above a support trendline at $0.073, showing signs of increased demand at this level.
As the crypto market experiences a reduction in supply pressure, altcoins are finding support levels and gearing up for a bullish reversal. With Bitcoin eyeing a new high, opportunities may arise in prominent layer 1 altcoins during the post-correction rally.
