Altcoin
The Altcoin trend suggests an imminent explosive rally, here’s why
As the altcoins As the market enters a prolonged reaccumulation phase, signs point to an imminent major rally.
Although the market is currently in bearish territory, past trends and analysis show that there is immense growth potential for altcoins. According to Mikybull, a crypto analyst, the 2020 price pattern is forming, suggesting that a massive price increase is imminent.
Altcoin reaccumulation phase
Sentiment in the market towards altcoins is currently bearish and many investors have 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 situation for major market rallies.
He points out that the time to reduce risk was earlier in the cycle, not now, as the market has only been pushed back from an initial target, with further targets still in play.
Furthermore, it has been observed that every major bull cycle has ended with a significant decline That of Bitcoin market share, which has opened up huge opportunities in the altcoin market. This, according to him, is something that will likely happen in the coming months, peaking in October 2025.
According to the analyst, market makers may be trying to deceive investors by saying that the bull market is over, but the current reaccumulation phase is an indication of the opposite. Cyril expects that sellers forced to sell at a lower price will buy back at a higher price, thus supporting the idea of an altcoin surge.
Technical indicators and historical patterns
Technical analysis also confirms the bullish view of the market regarding altcoins. The 50-day and 200-day moving averages (MAs) are showing bullish trends, but recent price actions have moved close to these MAs, implying sideways movements. However, as seen from the chart, prices are making higher lows while the MACD is making lower lows, indicating that the bullish trend may continue.
Furthermore, according to Mikybull, the market is now in a consolidation phase, with prices penetrating the short-term MAs but remaining above the long-term MAs. This phase, which is usually preceded by a ‘final shake out’, 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 have led to significant price increases in altcoins. For example, in past cycles, according to crypto analyst Michael van de Poppe, altcoins like Solana (SOL), Fetch.ai (FET)and Render Token (RNDR) saw gains of 500%, 650%, and 300%, respectively.
This time, according to a Coingape report, some of the trending altcoins that could lead this rally and have a potential profit of 20,000% are LevelZero (ZRO)zkSync (ZK) and Solana (SOL).
The Gaussian channel points to breakout
Next, comparing the current market to previous cycles, such as those in 2017 and 2021, reveals striking similarities. Both periods began with phases of consolidation followed by steep, parabolic increases in market capitalization. These formations typically indicate a buildup and increase in buying pressure, leading to breakouts.
The current market structure mirrors these historical patterns, with a consolidating triangle formation and strong underlying support.
If this pattern holds, projections for 2024 suggest another significant rally. Additionally, the 3-week Gaussian channel recently transitioned from red to green, indicating a transition from bearish to bullish conditions. Historically, such transitions have preceded robust market rallies.
Read also: Top 4 altcoins to buy that can reach a market cap of $100 billion