How ETF Approval Affects The Complete Capitalization Of Altcoins Like (Sol), (Eth) And (XRP)

The pump has not yet occurred, in contrast to forecasts that stated the price of Bitcoin would swiftly surpass $48,000 and settle at roughly $50,000 once the SEC approved the spot ETF. In the meantime, there has been a noticeable upsurge in the altcoin market, with the top cryptocurrencies exhibiting an average growth of 10%–20%. In addition, the price of XRP and SOL is poised to benefit from the present momentum as Ethereum (ETH) has overcome its barrier level of $2,500 and is now approaching $2,700.

The Recent Collapse Of Bitcoin Sparked An Altcoin Boom

The buying interest in altcoins surged after the SEC's ruling on the spot ETF application, which did not have the anticipated effect on BTC's short-term targets. Investors in ETH became increasingly optimistic about the prospect of a spot ETH ETF approval.
Apart from that, given the ongoing SEC case against Ripple, investors are anticipating the possibility of an XRP ETF, which might come to pass in the next several years. Moreover, billions of dollars are anticipated to enter the market as a result of the recent adoption of a Bitcoin ETF, greatly boosting the DeFi market cap and possibly driving further price increases for Solana.


The altcoin season index has had an incredible exponential rise over the last several hours, going from a low of 56 to 67. It's important to note that if this indicator rises above 75, an altcoin season may be about to begin. In this case, if Bitcoin doesn't exhibit any encouraging patterns, a lot of investors might start focusing on altcoins.

Analysis of Solana Price

As it struggles to stay close to the resistance line at $107, solana price is currently trapped inside a declining channel formation. However, bulls are defending the SOL price above moving averages. With a 4.9% increase from 10th January's pricing, Solana is currently trading for $99.3.


In addition to the Relative Strength Index (RSI) trading at the midpoint, the EMA lines exhibit a levelling trend. This indicates that supply and demand are in a condition of equilibrium. A move towards $120 is possible if SOL breaks the present momentum over the resistance line of the channel.

Analysis Of The XRP Price

XRP is currently seeing a decrease as a result of Bitcoin's $49K rejection. The market is still moving in a favorable direction, therefore the decline might not get stronger. The price of XRP is currently trading at $0.598, up more than 6.7% from 10th January's price.


The 100-day EMA is now maintaining purchasing confidence, while the RSI is trading below the overbought area, indicating a bullish advantage. In the next days, we can witness a bullish effort to breach the critical resistance around $0.66, boosting XRP’s price above $0.74.

Analysis of Ethereum Price

Ethereum saw a large increase from its 20-day moving average, indicating a lot of interest in purchasing at reduced rates. But as soon as the price turned back from $2,700, this upward momentum was rejected, indicating bearish dominance in the vicinity. The price of ETH is currently trading at $2,585, up more than 6.1% from 10th January's closing price.


If the price holds steady above $2,500, it would indicate that the upward trend will continue. Under this scenario, the price of ETH might drop back to $2,700 before rising to the crucial $3,000 milestone.

Conclusion

The approval of 11 spot Bitcoin exchange-traded funds (ETFs) in the United States on Wednesday 10th January, 2024 spurred fresh euphoria in the altcoin market led by Ethereum (ETH). Institutional investors' strong appetite for digital assets has greatly boosted confidence in the space. In addition, Circle, one of the top stablecoin issuers, submitted an IPO application to the US Securities and Exchange Commission (SEC) on Thursday 11th January, 2024.