Are altcoins breaking free from Bitcoin? Solana, BNB hold the clue

Are altcoins breaking free from Bitcoin? Solana, BNB hold the clue

Following a period of significant gains for various altcoins, the momentum slowed down in recent days. However, indications suggest that volatility might return soon, according to an analysis.

What’s the Current Scenario for Altcoins?

Alphractal, a data analysis platform, shared insights utilizing the Correlation Heatmap to assess how multiple altcoins correlate with Bitcoin [BTC] movements.

The analysis explained,

“A correlation nearing 1 indicates altcoins closely mimicking Bitcoin’s price fluctuations, while values nearing 0 or negative signal independent altcoin movements.”

Currently, the correlation heatmap is trending towards negative territory, hinting at potential market volatility.

Exploring the viability of this analysis, CryptoCrypto delved into Solana [SOL] and Binance Coin [BNB].

Evaluating SOL and BNB’s Outlook

Analysis of Solana’s current condition aligned somewhat with the earlier assessment, showing signs of impending high volatility.

Notably, Santiment’s data highlighted a significant rise in SOL’s Weighted Sentiment, indicating growing bullish sentiment.

Previously, CryptoCrypto had noted SOL’s Open Interest reaching record levels, often suggesting a continuation of existing price trends.

In contrast, BNB took a divergent path last week, experiencing a consolidation phase. Consequently, its Weighted Sentiment declined, reflecting diminishing investor confidence.

Despite this, prospects of a bullish reversal emerged as BNB’s Open Interest decreased. However, caution was warranted, given indications from BNB’s MACD signaling potential bearish trends. Additionally, the altcoin’s Chaikin Money Flow (CMF) exhibited a downward trend.

Conversely, Solana displayed promising indicators. Its MACD indicated a strong bullish stance.

Furthermore, SOL’s Money Flow Index (MFI) stood at 71, steadily climbing, reflecting a likelihood of sustained high volatility for Solana.

 

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