Analyst Dan Gambardello notes Ethereum and Cardano's potential for altcoin season as market sentiment turns bullish. On-chain data suggests increasing interest and volume.
Despite recent increases in price, crypto expert Dan Gambardello has noted that Ethereum [ETH] and Cardano [ADA] have yet to make significant movements to confirm the anticipated altcoin season. Gambardello shared this insight during a recent session on YouTube with his subscribers on February 19th.
Gambardello emphasized that Bitcoin’s [BTC] dominance remains notably high. Consequently, while many altcoins have shown promising performances, this may just be the beginning of what could unfold once the altcoin season gains momentum.
For those not familiar with the terminology, "altcoin season" refers to a phase in the market cycle where alternative cryptocurrencies outperform Bitcoin. Historical data indicates that this surge typically begins with capital flowing into ETH.
In the last bull cycle, ETH led the charge, often accompanied by ADA's breakthrough. This pattern may repeat, but current observations of Bitcoin's dominance suggest that ETH has not yet seized the spotlight.
Analysis of CoinStats’ data by AMBCrypto reveals that Bitcoin's dominance has risen to 49.4%, despite briefly slipping below 49% earlier.
However, remaining below the 50% mark could present an opportunity for ADA and ETH to exert influence over the market. Nevertheless, this alone might not be sufficient to trigger an altcoin season, prompting further examination of market sentiment surrounding these cryptocurrencies.
According to Santiment's findings, ADA's Weighted Sentiment stands at 0.918.
Meanwhile, ETH also boasts a positive Weighted Sentiment, currently at 0.918. This metric reflects the perception held by average market participants regarding a project.
These readings suggest a predominantly bullish sentiment among traders towards the Ethereum and Cardano ecosystems. Should this sentiment persist, it could lead to increased buying pressure on these cryptocurrencies.
If this scenario unfolds, ADA's price may approach $1, while ETH's projected price of over $3,000 could materialize.
Regarding trading volume, on-chain data indicates that ADA has surged to $685.07 million. This uptick in volume signifies growing interest in ADA, translating into heightened buying and selling activity. ETH's volume has mirrored a similar trend.
At present, Ethereum's volume stands at $15.62 billion. Coupled with its price, this volume could fuel further upside potential. If ADA's volume continues to climb alongside its price, it may overcome overhead resistance.
Moreover, ETH's ascent to $3,500 could materialize if interest in the cryptocurrency sustains its upward trajectory. Should ADA reach $0.90 and ETH hit $3,500, it could potentially catalyze increases in other altcoin prices.