Significant pullbacks hit popular altcoins on Sunday, September 29, as Bitcoin’s recent movement stalled just shy of $66,000.
Jasmy, Daddy Tate, and Reef Experience Declines
JasmyCoin (JASMY), a well-known Japanese cryptocurrency, fell to $0.02326, marking an 8% decrease from its peak on Saturday.
Daddy Tate (DADDY), the meme coin linked to a controversial personality, dropped to an intraday low of $0.1147, while Reef (REEF) saw a decrease to $0.0052.
Notably, some of this month’s standout performers also faced sharp declines—a clear indication that traders were beginning to realize profits. Moo Deng (MOODENG), a viral hippo-themed meme coin, plummeted by 17%, and LandWolf (WOLF) experienced a decline of over 10%.
As a consequence, the total cryptocurrency market cap tracked declined by nearly 2%, settling at $2.4 trillion. Despite this setback, cryptocurrencies have generally performed well this month, with Bitcoin climbing over 20% from its lowest point and remaining about 10% short of its all-time high. This uptrend provides an explanation for the rebound seen in many altcoins, as they often outperform during bullish cycles.
Market Sentiment Insights
There are two primary factors contributing to the retreat of altcoins like Jasmy, Reef, and Daddy Tate. First, a market analysis revealed that Bitcoin may face challenges in reaching its all-time high due to increasing bullish sentiments reflected in social media discussions.
While heightened optimism on social media can be seen as a positive sign, historical trends indicate that markets often react contrary to public sentiment.
Concerns have also emerged regarding Bitcoin’s potential resistance at a descending trendline connecting its highest swings since March. If Bitcoin fails to surpass this level, it could result in a significant downturn, impacting other altcoins as well.
However, a breakthrough beyond this trendline—an outcome anticipated by some analysts—could lead Bitcoin to its next resistance level at $70,000 and ultimately towards its all-time high.
Moreover, profit-taking by investors following recent price surges may have contributed to the drop in altcoins. For instance, Reef previously surged over 1,018% from its lowest point this month, while Jasmy and Daddy Tate saw increases of 48% and 144%, respectively.
Historically, following substantial rallies, altcoins often face corrections. Recent on-chain data highlights that a Jasmy whale transferred tokens valued at $1.5 million to an exchange, with three additional wallets moving a total of $4.5 million in tokens in the last 24 hours.
