Over the past three days, the market value of cryptocurrencies excluding Bitcoin has dropped by about 10%, with a nearly 60% decline over the past month.
This trend indicates that there may be a drain of altcoin investments, leading to a sharp decrease in their value. However, some altcoins with strong underlying technology or limited supply may increase in value.
This could be the last correction before a new capital flow enters the altcoin market, as suggested by popular analyst Michaël van de Poppe.
Capital Shift to Altcoins
Van de Poppe argues that the negative sentiment surrounding altcoins can currently be seen in the decreasing valuations of various cryptocurrencies compared to Bitcoin, reaching historical lows. His analysis demonstrates that the current altcoin environment may resemble previous trends, suggesting a potential rebound.
He cites SOL, FET, and RNDR, which have respectively seen profits of over 300%, 650%, and over 500%.
This chart explains it all. The #Altcoin sentiment is terrible currently, as the BTC valuations of all the altcoins are reaching new lows.
The last time this happened:
$ SOL went +500%
$ FET went +650%
$RNDR went +300%
This time, altcoins are likely to do the same.
pic.twitter.com/KYpzPqwDKV
-Michaël van de Poppe (@CryptoMichNL)
June 22, 2024
Van de Poppe claims to see a recurring growth pattern in altcoin markets based on historical models. Despite existing obstacles, his research suggests that this market may soon turn around, as seen during previous rallies.
Altcoins Positioned for Rally
The expert remains optimistic about the future of altcoins. He points out that their market capitalization is still 50% below its highest value in 2021, with the recent correction adding a further 30% decline.
As this correction nears its end, Poppe predicts that altcoins could potentially witness a 100% rally, following a trajectory similar to Bitcoin’s.
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Altcoins Positioned for Rally
The expert remains optimistic about the future of altcoins. He points out that their market capitalization is still 50% below its highest value in 2021, with the recent correction adding a further 30% decline.
As this correction nears its end, Poppe predicts that altcoins could potentially witness a 100% rally, following a trajectory similar to Bitcoin’s.