Top Altcoins to Steer Clear of Amid Bitcoin’s Sub-$60k, Suggesting Prolonged Downtrend

The cryptocurrency market experienced a sudden downturn on Wednesday, leading to a drop in the price of Bitcoin below $60,000, with a 4% intraday loss causing a correction in major altcoins.

Earlier in the week, the influx from BTC ETFs had triggered a relief rally in the market. However, concerns are arising over increased selling pressure from distributions by the defunct crypto exchange Mt. Gox and liquidations by government entities.

Given the potential for a prolonged correction, investors may want to consider avoiding specific altcoins to safeguard their investments.

XRP, a cryptocurrency designed for swift and cost-effective cross-border payments, operates on the XRP Ledger, a decentralized blockchain established in 2012. The ongoing legal disputes between Ripple and the U.S. SEC have cast a shadow over XRP’s performance in the first half of 2024. The latest data shows XRP with a market cap of $26.3 billion and a trading volume of $1.037 billion over the past 24 hours.

Current analysis of XRP’s daily charts reveals it is trading at $0.47, testing the support trendline of a 6-year triangle pattern. A potential bearish breakdown could intensify selling pressure, potentially pushing the price below $0.40.

Dogwifhat (WIF), a meme-inspired cryptocurrency launched on the Solana blockchain in late 2023, has shown significant volatility, with a 53.22% decline from its peak during the market correction in June. Daily charts indicate WIF is moving within a channel pattern, possibly leading to a further 28% decline before finding support.

Gala Games (GALA), a blockchain gaming platform enabling players to earn cryptocurrencies and NFTs, has seen a steady downtrend over the past four months. The formation of falling wedge patterns has contributed to a 70% decrease in price, with the market cap now at $828.2 million. A breakout above the overhead trendline is crucial for a potential market sentiment shift and reversal of the downtrend.

The recent Bitcoin drop below $60,000 has reignited correction concerns in the market. The past two weeks may have been a temporary relief rally, and the resumption of selling pressure suggests a prolonged correction. A strong daily close below $60,000 for BTC could signal further corrections in altcoins.