- If Bitcoin’s dominance wanes, ETH and ADA could lead the altcoin rally.
- The broader market was bullish on both cryptocurrencies.
Despite the price increase lately, crypto analyst Dan Gambardello said about Ethereum [ETH] and Cardano [ADA] have not made any major moves to confirm the long-awaited altcoin season. Gambardello mentioned this on YouTube session he had with his subscribers on February 19th.
According to him, that is Bitcoin [BTC] dominance was still at a high level. Therefore, the astonishing performance of many altcoins may be just a hint of what is to come when altcoin season arrives in full force.
Everything depends on these two
For those unfamiliar with the market terrain, altcoin season is crypto terminology that refers to a phase in a market boom cycle where alternative cryptocurrencies outperform Bitcoin. Historical data shows that the boom starts when capital first flows into ETH.
During the last bull cycle, ETH led the rally, but it was also accompanied by the ADA breakout. This time may be no different. But a look at Bitcoin’s dominance showed that it had not yet opened the door to ETH.
AMBCrypto analyzed CoinStats data showed that the coin’s dominance had increased to 49.4%, despite previously dipping below 49%.
Source: CoinStats
However, a percentage of less than 50% could give ADA and ETH the opportunity to dominate the market. However, that alone may not be enough to create an altcoin season. That’s why we evaluated the market sentiment surrounding these cryptocurrencies.
Market participants have their eyes on ADA and ETH
According to the result we got from Santiment, the weighted sentiment of ADA was 0.918.
ETH, on the other hand, also had a positive weighted sentiment. At the time of writing, the metric was 0.918. The metric shows the perception that average market participants have about a project.
Therefore, these measurements suggest that most traders were optimistic about the Ethereum and Cardano ecosystems. Should this sentiment continue, there could be buying pressure for the cryptocurrencies.
If this is the case, ADA’s price could head towards $1. Also, ETH’s price prediction could go above $3,000.
Source: Santiment
In terms of volume, data on chain showed that ADA increased to $685.07 million. The increase in volume implies that interest in ADA has increased. Moreover, that interest had translated into a jump in buying and selling. ETH volume also followed a similar trend.
Realistic or not, here is ADA’s market cap in ETH terms
At the time of writing, Ethereum’s volume was $15.62 billion. When related to price, volume can provide an upward momentum. If ADA’s volume continues to rise alongside the price, it could beat the overhead resistance.
Source: Santiment
Moreover, ETH’s rise to $3,500 could happen if interest in the cryptocurrency supports the rise. Should ADA reach $0.90 and ETH reach $3,500, other altcoin prices could rise.