Key Insights
- The upcoming Donald Trump inauguration is calling a lot of attention towards certain cryptocurrencies.
- Whales have been accumulating smaller cap altcoins as an increase in the altcoin market skyrockets.
- Some of the particularly interesting cryptocurrencies are Cardano, XRP, Ethereum and Dogecoin.
- All of the above cryptocurrencies have enough potential to rally to the upside if Donald Trump keeps his campaign promises.
The crypto market is surging massively on major timeframes, with the inauguration of Donald Trump as the next president of the United States approaching.
Investors now appear to be shifting their focus from mainstream cryptocurrencies like Bitcoin into altcoins like Ethereum, XRP and Cardano.
Here’s why these whales are behaving this way, and why they hope to capitalize on what comes next for the US economy.
Altcoins Shine as Bitcoin Steadies
Bitcoin has remained relatively stable around the $102,000 mark, with a 4% gain over the last 24 hours.
On the flip side, smaller-cap altcoins like XRP, Cardano and Litecoin have seen explosive growth, with XRP rising by 40% over the last week and Cardano rising by 18% over the same timeframe.
This margin between Bitcoin and the altcoin market shows general health in the market’s performance.
More importantly, it shows that investors are increasingly favoring the altcoins, especially with Trump’s plans for crypto adoption.
There has also been some speculation about an “American crypto reserve” that could possibly include assets like Bitcoin and even XRP or Solana.
All of the above factors have contributed to the frenzy, even despite the lack of official confirmation from Trump or his team.
Altcoin Boom Outshines Bitcoin
Interestingly, Trump’s election win in November has seen a staggering 98% price increase in the CoinDesk 20 index.
This growth has outpaced Bitcoin’s 46% price increase, wit the small-cap altcoins stealing the spotlight.
Platforms like Coinbase and Robinhood are also benefiting with their stocks gaining within the same timeframe.
Adding to the excitement is the comment in a CNBC interview from Federal Reserve Governor Christopher Waller, who suggested that interest rate cuts could arrive as early as the first half of the year.
All of these factors have bolstered confidence in the market, as well as confidence in riskier assets like Bitcoin.
Waller’s remarks have shifted expectations for the market, with a 50% chance of rate cuts in May, and a 55% probability of something similar happening by year end.
Spotlight on Key Cryptocurrencies
As Trump’s inauguration nears, a few cryptocurrencies have emerged as investor favorites so far.
Here’s a look at all of them:
Dogecoin
The memecoin king has soared by nearly 25% over the last week to a new high of around $0.41.
This marks nearly a 400% price increase over the past year, where it struggled underneath the $0.2 zone.
Trump’s pro-crypto policies and Musk’s appointment as the leader of the Department of Government Efficiency (D.O.G.E.) have increased interest in the token.
According to the charts, Dogecoin is currently trading within a symmetric triangle and should be ready for a breakout towards the upside as illustrated.
Dogecoin price prediction indicates that the cryptocurrency could range between the $0.38–$0.42 zone for a while, before shooting upwards towards the $1 mark by mid-year.
Ripple (XRP)
XRP currently sits at around $3.25 and has come a long way over the last year.
The cryptocurrency’s ability to perform low-cost transactions across borders has made it a favorite among governments and institutions.
This growth has helped it to become the 3rd largest cryptocurrency by market cap—right underneath Ethereum as the 2nd.
XRP broke out of the symmetric triangle illustrated above sometime this week, and has broken above the $3 mark for the first time since 2018.
The XRP price could continue further up above the $3 mark according to analysts, and climb as high as the 8–$20 zone according to analysts.
Ethereum (ETH)
Ethereum currently trades at around $3,400 and rebounded after hitting oversold territory.
The bulls appear to have taken advantage of its relatively low prices and are pushing it above the psychological $3,500 price level.
The cryptocurrency has a huge role to play in the defi ecosystem, especially since its 2002 merge.
Once the crypto market begins to recover fully, analysts predict that the Ethereum price could become one of the top performers, with a price target between $8,000 and $10,000.
Cardano (ADA)
Cardano has a current price of around $0.95 and remains a strong contender because of its sustainability and smart contracts.
The cryptocurrency has a current price of around $1.12 and is performing well after breaking above the psychological $1 zone this week.
Cardano is attempting to finalize a break out of the symmetric triangle shown in the 4-hour chart above.
Analysts generally expect the ADA price to reach the $5 price level at least, or the $7 level if Bitcoin remains stable.
