Altcoins may see a rebound as they test a key support trendline dating back to 2017.
AI and DeFi sectors, including Uct, Anon, Renzo, and Avo, show strong growth potential.
Macro shakeouts often precede major bull runs, with current trends echoing the 2016 cycle.
The altcoin market recently experienced a downturn, driven by factors such as the Japanese Yen carry trade and Jump Trading’s massive Ethereum sell-off. This triggered widespread liquidations across the crypto market, causing a substantial dip in both Bitcoin and Ethereum prices. However, despite the crash, some market analysts see potential for a strong recovery, particularly in select altcoins.
Michael van de Poppe, an analyst in the crypto community, shared his insights following the recent market correction. In a YouTube video titled, “The Best Altcoins To Buy After This Crypto Crash!”, van de Poppe delved into the reasons behind the market turmoil and its impact on altcoins.
In yesterday’s update, I discussed the significant crash in the #Altcoins market. Since then, I’ve identified some key altcoins that have the potential to perform well in the current environment.Check out the video where I break down my top picks:https://t.co/MmDJiBGj4s
— Michaël van de Poppe (@CryptoMichNL) August 12, 2024
Michael van de Poppe pointed out that the correction was largely driven by reported global economic events but suggested that the selling pressure, particularly in Ethereum, might be nearing its end. Van de Poppe remains optimistic about Ethereum’s performance and highlighted opportunities in the AI and DeFi sectors. He specifically mentioned Uct in AI and Anon, Renzo, and Avo in DeFi as altcoins with growth potential due to increased trader interest.
Adding to the discourse, crypto analyst Mags provided a historical perspective on the altcoins market cap. Mags noted that the market cap is once again testing a long-term upwards-sloping trendline, which has consistently served as a strong support zone since 2017.
#Altcoins market cap is testing the long term upwards sloping trendline again. The trendline has served as a strong support zone since 2017. Over the past seven years, each time the altcoins market cap has tested this support zone, we have seen a significant bounce in… pic.twitter.com/wGIcpcwbXd
— Mags (@thescalpingpro) August 9, 2024
According to Mags, this trendline has previously marked the beginning of an uptrend in the altcoins market. If history repeats itself, the current testing phase could signal the onset of a new bullish cycle, potentially leading to a market recovery similar to the one witnessed in the previous cycle.
Supporting these views, another analyst, Mkybull, highlighted the pattern of macro shakeouts that often trigger major bull runs in crypto asset cycles. Drawing parallels to the 2016 cycle, Mkybull suggested that the current market conditions bear similarities to that period, indicating the possibility of an impending significant uptrend in altcoins.
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