The crypto market entered the last week of December with a more pessimistic sentiment, as the Altcoin market capitalization (TOTAL2) has evaporated nearly $300 billion in the 3rd week. Many Altcoins have returned to November's price levels, completely wiping out the profits gained in December.
On the other hand, some Altcoins have seen strong gains but lack fundamental support, which could become significant Altcoin declines in the last week of the month.
Also Read: 3 reasons showing Altcoin Season is about to enter a major correction in December
Altcoin Season shows signs of ending in December
The Altcoin Season Index has just witnessed the most severe decline of the year. When this index rose nearly 90 points, a series of analyses confirmed that the market was entering a promising Altcoin season. But just 2 weeks later, the Altcoin Season Index returned to the "starting line", dropping from 88 points to 47 points.
Fluctuations of the Altcoin Season Index. Source: blockchaincenterTheoretically, an index below 50 points is indirectly confirming that the market is entering a new state. CoinMarketCap's Altcoin Season Index data has also dropped to 42 points, implicitly predicting that investor sentiment towards Altcoins may enter a sideways phase at a low level, or become a "Bitcoin Season" with the meaning that capital flows will prioritize Bitcoin more.
3 Altcoins with the highest potential to decline in the last week of December
Altcoins that have seen the strongest gains in recent months and are showing signs of losing internal momentum are likely to become the biggest decliners.
#1. Virtual Protocol (VIRTUAL)
CoinMarketCap reports that Virtual Protocol (VIRTUAL) is the Altcoin leading the market performance in the past three months. The wave of interest in AI Agent has driven the demand for VIRTUAL. But data from Dune shows that the number of AI Agent tokens created on this protocol has dropped sharply.
Number of AI Agent created on Virtual Protocol. Source: Dune/hashed_officialSpecifically, from a high level of over 1,000 AI Agent created, it has now dropped to less than 50 AI Agent. This is a sign that the heat of AI Agent is trending down at the end of December. This could cause VIRTUAL to lose its upward momentum. Recent VIRTUAL price analysis from BeInCrypto forecasts the price could drop to the $1.34 region.
#2. Pudgy Penguins (PENGU)
Pudgy Penguins (PENGU) is showing signs that the temporary FOMO is fading. Thanks to the Binance listing, PENGU's price has risen to the 3rd position in the TOP10 Altcoins with the best performance in the last 90 days. But data from CryptoSlam shows that the sales volume of this NFT collection has dropped sharply from $24 million to $3 million.
Sales volume of Pudgy Penguins NFT collection. Source: CryptoSlam.Recent technical analysis of PENGU from BeInCrypto shows that the PENGU price has broken the $0.026 support, which is a technical signal predicting a deeper decline for the last week of the month.
#3. Solana (SOL)
Solana (SOL) is likely to continue declining in the last week of December with a large amplitude. An alarming sign has emerged early, which is that the total value locked (TVL) of SOL has no longer been increasing in December and shows signs of setting a lower low. The TVL of SOL has decreased by $1 billion in the past week to $8.4 billion, the lowest since mid-November.
Total Value Locked in Solana (TVL). Source: Artemis.This is a sign that capital is starting to flow out of the Solana ecosystem. In reality, the SOL price has also dropped below the critical $206 support and is likely to continue declining to $160 by the end of December.
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