Top 3 Altcoins to Invest in During Bitcoin’s Potential $50,000 Correction
The recent performance of Bitcoin has shown a sluggish trajectory, attempting to stabilize above the $50,000 mark over the past weekend. Analyzing the daily chart, a long-wick neutral candle indicates a lack of clear direction between buyers and sellers for this asset.
Data from Coinglass reveals that 96,521 crypto traders faced liquidation, resulting in a total liquidation amount of $425.37 million. Bitcoin (BTC) experienced $190 million in liquidations, while Ethereum (ETH) saw $94 million in liquidations.
In a significant move, the German government transferred 16,038.7 BTC, valued at around $915.3 million, to exchanges and market makers. This transfer is part of a broader sell-off that commenced on June 19, totaling 26,071 BTC, equivalent to $1.527.9 million.
The address associated with these transactions currently holds 23,788 BTC, valued at approximately $1.32 billion. Additionally, the U.S. government and the now-defunct Mt. Gox exchanges are expected to further liquidate their BTC holdings, potentially increasing supply pressure on Bitcoin and pushing its price towards $50,000.
Amidst these developments, traders on the sidelines may consider alternative coins like Solana (SOL), Pepe Coin (PEPE), and Chainlink (LINK).
Solana (SOL) is a high-performance blockchain platform designed for decentralized applications (dApps) and cryptocurrencies, aiming to offer fast, secure, and scalable blockchain solutions. Following Ethereum, Solana is positioned as a strong asset for potential Exchange-Traded Funds (ETFs), reflected in recent S-1 filings for Solana-based ETFs. The current SOL price is showing active demand pressure at $122, trading at $137.5 with a market cap of $63.6 billion. A potential breakout from the triangle resistance trendline could drive a bullish rally to $210 and $326.
Pepe Coin (PEPE) is an Ethereum-based meme coin inspired by the popular internet meme character, Pepe the Frog. The ongoing correction in PEPE price is contained within a flag pattern formation, with a rebound of 12.2% today to trade at $0.0000095. A breakout above the overhead trendline could signal an uptrend continuation, potentially surpassing the previous high of $0.00001745.
Chainlink (LINK) is a decentralized oracle network facilitating smart contracts on various blockchains to interact securely with real-world data and external APIs. LINK, the native cryptocurrency of Chainlink protocol, trades at $12.9 with a market cap of $7.86 billion. The $12.2 support level is crucial for LINK price to prevent a major decline, with a potential reversal aiming to challenge the overhead trendline at $16.2 and reclaim levels above $20.
In conclusion, with Bitcoin facing supply pressure and the potential for a price decline, investors may find opportunities in alternative coins during this extended correction phase.
