Altcoin and funding rates at their peak: still bullish or price correction?

The altcoins are recording positive performances in the last 30 days, with price gains of over 250%. At the same time, the 30-day funding rates of altcoins are also on the rise, reaching 9-month highs. With this scenario, traders want to know the fate of the current crypto rally: still bull or price correction?

Altcoin in bull: gains over 250% and funding rates at their highest in the last 30 days

In the last thirty days, altcoins have been recording dizzying performances, with gains of over 250% in the last thirty days. 

At the time of writing, Cardano (ADA) is in a pump of +250% compared to a month ago, Stellar (XLM) +432%, Hedera (HBAR) +577%, XRP +352%, and Algorand (ALGO) +328%. 

Some earlier, some later, the crypto rally had its kickoff just when 30 days ago Donald Trump, a pro-crypto candidate, was announced as the winner of the USA 2024 presidential elections. 

As of today, however, the operators are looking for indicators to understand what the fate of the altcoins will be. Among others, an indicator to consider is the funding rate of the altcoins. 

According to the data from CoinGlass, it has emerged that the 30-day funding rate for perpetual futures has increased significantly, with bulls paying between 4% and 6% per month to maintain leveraged positions.

This level is starting to be high, but not yet like the 25% recorded in the 30-day funding rates during the rally last February 2024. 

Altcoin and funding rates: is there still room for another bullish wave?

Going into more detail, for example by looking at the case of only ADA and XRP, it can be noted how their funding rates are indeed higher than those of the last six months, but lower than the 12-month highs. 

In this sense, this indicator could suggest that the two altcoins still have room for further price growth, driven by leverage. 

Obviously, in order to have more certainty, it is necessary for operators to consider the funding rate of altcoins along with other indicators. 

In any case, in general, if the 30-day funding rate of altcoins remains between 4-6%, the situation remains manageable, without an immediate threat of cascading liquidations. 

The latest price forecasts for crypto

Recently, the analyst Dan Gambardello published on X his price prediction for ADA at $3, which will be reached very soon if it follows the path of XRP.

In practice, the analyst believes that even if there is a demand for spot ADA ETFs in the USA for Cardano, such a probability of reaching a new ATH could quickly become a reality. 

Speaking of Ethereum, the analyst from Bitget Research, Ryan Lee, stated that ETH should fluctuate between $3,000 and $4,500 this December 2024. At the time of writing, ETH is valued at $3,851 and is in a pump of +4% compared to 24 hours ago and +7% compared to a week ago.

For Dogecoin, the introduction of Valour’s ETP, has led the AI to state that the price prediction for DOGE is $0.50 in the short term, also thanks to the FOMO that could be created around the memecoin. In reality, in the last 24 hours, DOGE has reached the threshold of $0.46.