Jasmy Daddy Tate and Reef Suffer Losses as Bitcoin Remains Stagnant at 65000
Altcoins experienced a significant downturn on Sunday, Sep. 29, following the stall in the recent Bitcoin surge just below $66,000.
JasmyCoin (JASMY), a popular Japanese coin, saw a retreat to $0.02326, marking an 8% decline from its peak on Saturday. Daddy Tate (DADDY), the meme coin associated with controversial social media personality Andrew Tate, hit an intraday low of $0.1147. Reef (REEF) also dropped to $0.0052.
Even some of the top gainers of the month faced sharp declines, indicating that traders began to take profits. Moo Deng (MOODENG), the viral hippo-themed meme coin, experienced a 17% decline, while LandWolf (WOLF) fell by over 10%.
CoinGecko reported that the total market capitalization of all tracked cryptocurrencies decreased by nearly 2% to $2.4 trillion.
Nonetheless, cryptocurrencies have been among the best-performing assets this month. Bitcoin rose by over 20% from its lowest point and is currently about 10% below its all-time high. This rally explains the bounce-back of most altcoins since, historically, these coins tend to perform well during bullish cycles.
There are two potential reasons for the retreat of altcoins like Jasmy, Reef, and Daddy Tate. Firstly, Santiment warned that Bitcoin might struggle to reach its all-time high due to an increase in bullish posts about Bitcoin on social media. While positive sentiment on social media is often viewed favorably, Santiment cautioned that markets typically move in the opposite direction of crowd expectations. From a technical perspective, there are concerns that Bitcoin may encounter resistance at the descending trendline, which connects the highest swings since March. Failure to break through this level could lead to a significant downturn, affecting other altcoins.
On the brighter side, if Bitcoin manages to surpass this level, as predicted by some analysts, it could reach the next resistance point at $70,000, followed by its all-time high.
Secondly, these tokens faced a retreat due to profit-taking among investors following the recent surge. Reef, for instance, experienced a staggering 1,018% increase from its lowest point this month. Similarly, Jasmy saw a 48% increase, while Daddy Tate recorded a 144% increase.
Historically, altcoins tend to decline after a strong rally. On-chain data indicates that a Jasmy whale transferred tokens worth $1.5 million to Coinbase, while three other wallets moved tokens with a combined value of $4.5 million to Coinbase within the past 24 hours.
In related news, Moo Deng experienced a spike as FOMO (fear of missing out) pushed holders to a record high.
(Note: Proper nouns and have been retained as per the original article.)
