Altcoin Trend Hints at the Coming Big Rally: Here’s Why
As the altcoin market enters a prolonged reaccumulation phase, signs point to a major rally approaching.
Although the market is currently in a bearish zone, past trends and analysis show that altcoins have very high upside potential. According to crypto analyst Mikybull, the 2020 price pattern is taking shape, indicating that a major price increase is imminent.
Reaccumulation Phase of Altcoins
Sentiment towards altcoins in the market is currently on a downward trend as many investors have a negative view on the market. However, this type of sentiment is typical for altcoins’ reaccumulation phases and occurs just before a market reversal. Supporting this view, DeFi analyst Cyril points out that the current toxic sentiment is a classic setup for major market rallies.
He emphasizes that the time to de-risk is not now, but early in the cycle, because the market has only been rejected from the first target and other targets are still in play.
It has also been observed that every major bull cycle results in a significant decline in Bitcoin’s market share, which opens up huge opportunities in the altcoin market. According to him, this is something that will likely happen in the coming months and peak in October 2025.
According to the analyst, market makers may try to deceive investors by saying that the bull market is over, but the current reaccumulation phase is an indication of the opposite. Cyril expects sellers who were forced to sell at a lower price to buy back at a higher price, which supports the idea of altcoin bullishness.
Technical Indicators and Historical Patterns
Technical analysis also supports the bullish market view on altcoins. The 50-day and 200-day moving averages (MAs) are trending upward, but recent price movements have approached these MAs, indicating sideways movements. However, as seen in the chart, while prices are making higher lows, the MACD is making lower lows, indicating that the upward trend may continue.
Additionally, according to Mikybull, the market is currently in the consolidation phase; prices enter short-term MAs but remain above long-term MAs. This phase, which usually precedes a ‘final shakeout’, is characterized by weak hands selling, thus setting the stage for a new bullish phase.
Historical data reveals that previous cycles with similar technical setups led to significant price increases in altcoins. For example, in past cycles, altcoins such as solana (SOL), Fetch.ai (FET), and render token (RNDR) have gained 500%, 650%, and 300% respectively, according to crypto analyst Michael van de Poppe. .
This time, some of the trending altcoins that could lead this rally and potentially make a 20,000% profit are LayerZero (ZRO), zkSync (ZK), and Solana (SOL), according to the Coingape report.
Gaussian Channel Points to Breakout
Then, comparing the current market to previous cycles, such as those in 2017 and 2021, reveals striking similarities. Both periods began with phases of consolidation and were followed by steep, parabolic rises in market value. These formations typically lead to breakouts, indicating accumulation and increased buying pressure.
The current market structure reflects these historical patterns, with a converging triangle formation and strong fundamental support.
If this pattern continues, predictions for 2024 point to another significant rise. Additionally, the 3-week Gaussian Channel recently shifted from red to green, indicating a transition from bearish to bullish conditions. Historically, such transitions have occurred before strong market rallies.
Also read: Top 4 Altcoins That Could Reach $100 Billion Market Cap
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Kelvin is a distinguished author specializing in crypto and finance, with a bachelor’s degree in Actuarial Science. Known for her sharp analysis and insightful content, she is fluent in English and specializes in comprehensive research and on-time delivery.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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