After several weeks of continued decline, major crypto markets have finally started to recover. Bitcoin recovered above $84,000, strengthening the narrative of a potential comeback. If this narrative plays out, Ethereum, XRP, and Solana stand to gain.
After reaching a multi-month low of $78,248 on Friday, Bitcoin bounced back over the weekend, registering a 6% increase to $84,970. This recovery adds to the recovery narrative that some analysts have been predicting.
Notably, analysts have pointed to Bitcoin’s Relative Strength Index (RSI), suggesting signals the market is bottoming out. Specifically, last week, the closing 14-day RSI dipped below 30. This often indicates extreme oversold conditions, suggesting that the market has bottomed out.
This is consistent with previous analyses of Bitcoin’s long-term channel between $78,000 and $140,000. However, the markets seem to be gaining short-term momentum. As Bitcoin recovered over the weekend, the RSI is approaching the upper limit of the oversold zone.
At the same time, the crypto fear and greed index slightly recovered, while still being in the extreme fear zone, going from 10 to 20 points. This momentum is good news for altcoins like Ethereum, Solana, and XRP, which will likely see more volatility in either direction.
What’s Next for Ethereum, Solana, and XRP?
The past few weeks have seen most major altcoins underperforming Bitcoin. For instance, Ethereum declined 20%, XRP 17%, and Solana 19% compared to Bitcoin’s 12% decline in the last seven days. This is consistent with the historical trend of altcoins underperforming Bitcoin in times of market declines.
Since December, Bitcoin’s dominance has steadily increased from 55% to its current level of 61%. Notably, Bitcoin’s dominance was at its lowest point in December, right at the top of the bull market. If the markets continue to recover, altcoins could recover some of their dominance.
For one, Ethereum defended its support at $2100 last week. It also reversed the trend of lower lows on Saturday, bottoming at $2,144. Solana fared better, reaching a daily high of $150.79, the highest level since February 25. XRP saw more volatility last week, but it is trending toward gradual stabilization.
Still, all altcoins face risks from potential fallout from the current trade tensions, which could ripple from stocks to crypto.
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