Altcoins
Altcoins Trend Hints at an Explosive Upcoming Rally, Here’s Why
As the altcoin The market is entering a prolonged reaccumulation phase, with signs pointing to a major rally imminent.
Although the market is currently in bearish territory, past trends and analysis show that there is immense upside potential for altcoins. According to Mikybull, a crypto analyst, the price trend for 2020 is forming, which suggests that a massive price surge is imminent.
Altcoin reaccumulation phase
Market sentiment towards altcoins is currently bearish, with many investors having a negative view of the market. However, this kind of feeling is typical of altcoins reaccumulation phases and occurs just before market reversals. Supporting this view, DeFi analyst Cyril points out that the current toxic sentiment is a classic setup for large market rallies.
He points out that the time was right to de-risk earlier in the cycle, not now, because the market was only rejected from an initial target, with other targets still in play.
Additionally, it has been observed that every major bull cycle ends with a significant decline in the Bitcoin market share, which has opened up huge opportunities in the altcoin market. According to him, this is expected to happen in the coming months and peak in October 2025.
According to the analyst, market makers might try to mislead investors that the bull market is over, but the current reaccumulation phase indicates otherwise. Cyril expects that sellers forced to sell at a lower price will repurchase at a higher price, supporting the idea of an altcoin surge.
Technical Indicators and Historical Patterns
Technical analysis also supports the market’s bullish view regarding altcoins. The 50-day and 200-day moving averages (MA) show bullish trends, but recent price action has moved closer to these MAs, implying sideways movements. However, as the chart shows, prices are making higher lows while the MACD is making lower lows, indicating that the uptrend may continue.
Additionally, according to Mikybull, the market is now in a consolidation phase, with prices penetrating the short-term MA but remaining above the long-term MA. This phase, which is usually preceded by a “final shake-up”, is characterized by selling by weak hands, thus paving the way for a new bullish phase.
Historical data reveals that previous cycles with similar technical setups resulted in significant increases in altcoin prices. For example, in past cycles, according to crypto analyst Michael van de Poppe, altcoins like Solana (SOL), Recover.ai (FET)and Render Token (RNDR) saw gains of 500%, 650%, and 300%, respectively.
This time around, according to a report from Coingape, some of the trending altcoins that could lead this rally and generate a potential profit of 20,000% are Layer Zero (ZRO)zkSync (ZK) and Solana (SOL).
Gaussian channel points towards a breakout
Therefore, comparing the current market with previous cycles, such as those of 2017 and 2021, reveals striking similarities. Both periods began with phases of consolidation followed by steep, parabolic increases in market capitalization. These formations generally indicate a build-up and build-up of buying pressure, leading to breakouts.
The current market structure reflects these historical patterns, with a consolidating triangular formation and strong base support.
If this trend continues, projections for 2024 suggest another significant recovery. Additionally, the 3-week Gaussian channel recently turned from red to green, indicating a transition from bearish to bullish conditions. Historically, such transitions have preceded a strong market recovery.
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