The global crypto market has entered a period of correction after what has been the biggest boom in recent memory and traders are now seeing the market trade sideways — with smaller altcoins posting impressive gains, as others fall further.
The Crypto Fear and Greed Index, which is an impressive metric that measures the sentiment on the global crypto market, currently stands at 47, which means that the broader market is indecisive when it comes to the future direction of some of the largest cryptocurrencies, such as Bitcoin and Ethereum, which typically drive the market.
What should traders make of this? — Many crypto experts advise caution, as political and economic factors put the market through some challenges in the short-term and as crypto whales liquidate some of their holdings.
The reluctance of central banks to cut interest rates has also placed a burden on the global markets, which has hit asset prices across the board. As uncertainty continues to affect investor decisions, the crypto market is expected to trade sideways until the first interest rate cuts, or other bullish signals.
Looking forward, analysts from FXIFY and crypto whales seem to be expecting market indecision to persist until the next possible bullish catalyst, which could be more tied to macroeconomic and political factors, rather than purely on crypto sentiment.
Top 5 Gainers
A few familiar faces can be seen on the list of the top gainers for the month of June, with Kaspa, Monero and Tron being among them.
It must be noted that Telegram native coins, Toncoin and Notcoin, have both enjoyed double digit growth over the past 30 days, thanks to the Notcon ICO still being fresh after the project hit the markets on May 16 of this year.
Kaspa (KAS) +42.55%
Kaspa has been one of the most successful altcoins on the market and has gained a whopping 650% over the past 12 months. June has been no exception to Kaspa’s amazing annual performance, gaining over 40% throughout the month.
Going forward, Kaspa’s bullish momentum is unlikely to continue unchanged, as the broader market dips further and indecision takes hold.
Kaspa, which is a decentralized Layer-1 digital ledger, has massively grown in popularity, which has reflected very positively on its market price.
Investors looking to buy Kaspa could benefit from delaying the investment to buy the coin at a discounted price, as the coin is currently trading at a considerably high valuation which may be unsustainable in the near future.
Notcoin (NOT) +21.73%
Notcoin is a Telegram native cryptocurrency that had its ICO on May 16, 2024. The coin was part of a farming challenge for Telegram users and has only been actively trading for 1.5 months. For this reason, long-term prospects of the project are challenging to gauge at its current track record.
The coin has gained over 20% since the start of June. However, a bullish run on the coin remains unlikely, as many NOT holders could offload portions of their holdings to lock in profits while they are still able to do so.
While NOT’s performance for June was admirable, this should not serve as reference for long-term investors to enter the market and buy the coin to take advantage of its growth potential.
Toncoin (TON) +19.32%
Toncoin, the primary and first Telegram cryptocurrency, has had an amazing year so far, gaining as much as 475% over the past 12 months. June has been another positive month for TON investors, which saw the coin gain just under 20% in market value.
Going forward, Toncoin’s major bullish run may not be as straightforward, thanks to unfavorable market conditions. However, massive drops are unlikely, as other coins take the brunt of the bearish damage.
The growing popularity of Telegram further adds to the interest towards Notcoin and Toncoin — alleviating some of the drops experienced by the global crypto market.
Monero (XMR) +14.86%
Monero has been a mixed bag over the past 12 months — gaining only 2% in market value over the period. However, this does not fully describe the price trajectory of XMR, as it dropped significantly in February — losing roughly 60% of its market value.
Currently, as XMR stands at a price point similar to the one a year ago, the coin is likely to perform along the lines of most of the market in the coming months.
Furthermore, a drop in price is even more likely, as the price has increased from the lows of February to over $180, which is even higher than the high of February and roughly 75% higher than the trough of the same month.
Tron (TRX) +11.79%
A mainstay on the crypto market and one of the most important crypto projects in the world, Tron has had a great year so far — gaining over 60% over the past 12 months of trading.
While the coin may not be among the absolute top performing cryptos on the market, such returns are nonetheless impressive, especially for long-term investors.
Tron recently reached a new milestone of 2.5 million daily users, which is another important update for TRX bulls to be excited about. This has resulted in a double digit climb in market price for the coin, gaining over 11.7% over the past month of trading.
Going forward, a light correction remains likely, which, some could argue, has already begun, as the price of TRX is considerably lower at $0.125, than it was towards the end of February, at $0.142.
Top 5 Losers
Among the top losers of June are some of the best-performing coins of the start of 2024, which has been caused by a major correction that has taken place on the market since then.
Chiliz (CHZ) −50%
Chiliz is a small crypto project with an average daily trading volume of 30 million, which has completely tanked over the past month — losing 50% of its market value, which saw the price drop from $0.15 to $0.075 over the past 30 days of trading.
This drop has been in line with the overall decline seen by meme coins and other smaller altcoins that were unable to handle changing market tides and fell by the wayside as soon as conditions turned bearish.
Going forward, long-term investors are unlikely to start buying up CHZ, even at such a massive discount, due to the inherent instability of such crypto projects, coupled with market uncertainty.
Beam −47.48%
Beam has enjoyed a year of positive performance, reaching an annual high of $0.042 in March, which has changed drastically since then, with the coin currently trading at $0.016. Over the past 30 days, the coin has lost over 47% and its near-term future prospects are unlikely to offer much improvement, either.
As the market continues to trade sideways, the price of Beam is unlikely to enter a major bullish trend, which means that the fortunes of long-term Beam holders are largely dependent on broader crypto market trends, as opposed to the Beam project in itself.
A DeFi crypto wallet, Beam offers Mimblewimble L1 privacy to its clients, allowing them to conceal transactions at ease. While the practical application of Beam may be promising, the price of the asset has suffered over the past 30 days of trading.
Dogwifhat (WIF) −42.95%
Dogwifhat was one of the best-performing meme coins over the past few months of trading — going from less than $0.50 to as much as $4 and beyond between late February and early April of 2024.
However, as the market turns, the fortunes of WIF have also soured, with the coin losing over 40% of its market value throughout June, which has been a part of a longer trend which started shortly after the April peak for the coin.
The long-term prospect of Dogwifhat is, therefore, difficult to determine, as most meme coins tend to follow broader bullish trends prevalent on the market. In this regard, the ongoing fears among investors are unlikely to help WIF investors with much.
Celestia (TIA) −41.85%
Celestia is another crypto project that enjoyed positive performance towards the first quarter of 2024. However, TIA has dropped considerably since then. For example, the coin reached over $20 in February and currently trades at $6.15.
Similarly to other entries on our losers list, the prospects of Celestia depend on the broader market, which is far from bullish as of June, 2024. Therefore, major bullish catalysts are essential for TIA and other minor projects to take off once more.
Long-term Celestia investors have been stuck in a tough spot, while new entrants have the opportunity to buy TIA and other altcoins at significant discounts.
At $6.15, Celestia could be an interesting long-term play for investors with an appetite for risk.
Gala (GALA) −38%
Gala has been one of the best-performing cryptocurrencies of the past few months, but has since fallen on hard times. The coin has gained over 15% over the past 12 months, which does little to describe the performance of Gala in 2024.
The coin reached as high as $0.080 in March and currently trades at $0.027, which is a notable drop for a
Going forward, a bullish momentum will be essential to pull GALA back to its March highs, which seems to be unlikely in the short-term.
Conclusion
As we have seen, the spring bullish momentum has largely dissipated in June. Heading into July 2024, crypto bulls are likely to be perplexed by the indecision on the market, as macroeconomic trends and geopolitical tensions continue to sow doubt among millions of investors worldwide.
June was a mixed bag for altcoin investors, as the likes of Kaspa, Toncoin and Moneros saw double digit growth, while others, such as Beam, Celestia and Gala were among those hit the hardest, losing an average of 40% of their total market capitalization over the month.
Accurately gauging what the future looks like for the crypto market can be a challenge, but if current indicators are anything to go by, the market is likely to trade sideways for the coming couple of months.
The Crypto Fear and Greed Index further cements this sentiment, as the popular indicator reads an average 47/100, which shows plenty of indecision among crypto holders as to when to buy and sell their investments.
Overall, June has been full of opportunities for short-term buyers and sellers, while long-term investors may need to rethink their strategies to minimize some of the losses incurred after what has been a historic spring for the crypto market, with summer lagging firmly behind in terms of performance.
