As the new year approaches, some analysts forecast that 2025 will be a “very optimistic” year for altcoins. The sector is expected to explode soon and kick off the long-awaited “altseason” after testing key support levels.

Altcoins Testing Key Support Levels

In the context of the recent market, many altcoins have struggled to record significant gains. However, some market observers predict that this altcoin will launch soon in January 2025.

Fueled by the post-U.S. election rally, the total cryptocurrency market capitalization, excluding Bitcoin and Ethereum, surged in a three-year downtrend in mid-November, surpassing the yearly high of $788 billion. During this month's rally, the sector skyrocketed to $1.1 trillion, the highest market cap since 2021.

Since then, altcoins have struggled for the past two weeks, dropping nearly 26% as Bitcoin lost the $100,000 mark but remains above the critical level despite recent performance.

Crypto Jelle points out that the sector has exploded and is testing "its main trend line while obliterating all leverage in the process." The analyst emphasizes that funding has been "completely reset," sentiment is at an all-time low, and the chart looks promising, adding that he is "Very optimistic for 2025."

He also notes that the price action of altcoins "is very similar" to Bitcoin's first major pullback in 2021. According to the chart, this leading cryptocurrency had "a strong rally, a pullback, hit a lower peak, and fell below the first low" before breaking out to new highs.

Based on this performance, the altcoin pullback seems to be over; they "will soon start rising again if the situation continues like this." Similarly, Michaël van de Poppe stated, "The correction is about to end, and a just bullish time is approaching for altcoins and Bitcoin. Expect many things to come."

Will Altseason Follow the 2021 Scenario?

Titan of Crypto asserts that altcoins will soon explode, indicating that "the finale is approaching." According to the analyst's chart, altcoins have formed a cup and handle pattern over the past two years, breaking the upper line of the pattern during the recent market peak.

According to the model, altcoins, excluding ETH, could rise 200% to a market cap of $1.4 trillion, surpassing the 2021 high of $1.13 trillion. The analyst also pointed out that prior to the price increase in 2021, the sector had witnessed similar performance.

In 2020, altcoins exploded in November and saw a significant drop of 30% in early December, followed by a four-week recovery. They then recorded a 143% increase in January 2021, leading to three more green months before the first major pullback.

Similarly, they experienced a 26% decrease this December, currently in the third week of a projected four-week recovery phase. For analysts, "Early January may mark the beginning of a 'just up' season."

Finally, Titan of Crypto added that in the two most recent cycles, the initial rally of altcoins lasted between 140 to 175 days, suggesting that this cycle's rally could reach new highs around April or May. If it continues to follow the performance of previous cycles, it may witness the first rally around Q2 of 2025 before peaking in Q4.

DYOR! #Write2Win #Write&Earn $BTC