Prominent analytics firm Santiment says the altcoin market may continue to rally as long as two main factors persist.
In a new strategy session, Santiment says altcoins will likely continue to trend higher if Bitcoin (BTC) does not return to the $80,000 range and if possible, exchange-traded funds (ETFs) for alts continue to generate excitement.
[adinserter block="1"]“As we kick off May trading, stay alert to quickly evolving narratives – particularly if Bitcoin holds its position, and profits continue redistributing to various projects based on the latest news breaks. The altcoin rally may have legs if ETF hype continues, and if Bitcoin can stay strong above $90,000.”
Specifically, Santiment notes there is investor enthusiasm around the possible launch of spot market ETFs for payments token XRP, Ethereum (ETH) rival Solana (SOL) and memecoin Dogecoin (DOGE).
“Many believe that, once approved, these ETFs could bring in large amounts of institutional money and push XRP into the financial mainstream…
There’s also been mentions of Solana’s potential spot ETF approval, bullish market sentiment and its ranking among top cryptocurrencies, making it a focal point in crypto market discussions…
With Dogecoin now among the top 10 most traded coins and one of the largest by market cap, the idea of a DOGE ETF is gaining traction. The partnership between 21Shares and the Dogecoin Foundation (via the House of Doge) to promote the ETF has added credibility to the project, sparking stronger engagement from both longtime DOGE supporters and traditional investors looking for new opportunities. Because of these developments, crowd sentiment toward Dogecoin has clearly shifted.”
But Santiment warns retail traders could suddenly cause the market to plummet based on sentiment alone.
“However, retail euphoria often leads to sharp corrections, especially when memecoins are dominating attention. In a market driven by emotions as much as fundamentals, sentiment remains one of the most telling indicators of what’s to come.”
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