Over the past three days, the cryptocurrency market value, excluding Bitcoin, has dropped by about 10%, with a nearly X% drop in the past month.
This trend suggests that there may be a withdrawal of altcoin investments, causing their value to sharply decline. However, some altcoins with strong underlying technology or limited supply may appreciate.
This could be the last correction before a new capital flow enters the altcoin market, as suggested by popular analyst Michael van de Poppe.
Capital shift towards altcoins
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Van de Poppe claims that the negative sentiment surrounding altcoins can currently be seen from the decreasing valuations of various cryptocurrencies compared to Bitcoin, reaching historic lows. His analysis demonstrates that the current altcoin environment may somehow resemble previous trends, implying the potential for a rebound.
He cites Solana (SOL), Fetch.ai (FET), and Render Token (RNDR), which have respectively shown 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 reverse, as seen during previous rallies.
Read more:
A cryptocurrency investor turned $3,300 into $17,000 in two weeks
Altcoins are positioned for a rally
The expert remains optimistic about the future of altcoins. He pointed 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 potentially could witness a 100% rally, following a trajectory similar to Bitcoin’s.
