Last Dip For Altcoins? Expert Predicts Final Correction Before Bull Market Resurgence
As the cryptocurrency market faces a broader decline, altcoins face significant challenges, with Ethereum (ETH) suffering the biggest decline, down nearly 20%.
The drop comes after Ethereum repeatedly failed to break through the key resistance level of $4,000, a hurdle that has proven to be substantial and hampered Ethereum’s growth in recent months. cryptocurrency By the end of 2024, new record levels will be reached, just like Bitcoin (BTC).
Mid-cycle correction for altcoins: Road to recovery?
Market expert Ash Crypto recently provided insight into the current state of altcoins in a social media post on X (formerly Twitter), suggesting that they are undergoing a “mid-cycle correction.”
According to Ash Crypto, this phase is a natural part of the bull market cycle and may set the stage for these digital assets to regain previously lost value and potentially higher gains.
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in his social media postsThe expert highlighted historical precedent, noting that similar price action occurred in January 2021, just before the start of the altcoin season that attracted investors.
Despite the recent volatility, Ethereum and other altcoins have shown signs of slight recovery, with Ethereum managing to surge above $3,200, bouncing off the recent support at $3,100.
The recent gains have stemmed further losses and fueled traders’ hopes. However, Ash Crypto warns that another drop could come before further declines occur. continuous recovery Can be caught.
Market whales could shake up retail investors
In his analysis, Ash Crypto predicts that altcoins may undergo one last market correction before entering what he believes will be a full-blown bull market mode later this year.
The expert cited a chart he shared that depicts the total market capitalization of altcoins, excluding Bitcoin Ethereum shows potential consolidation potential between $926 billion and $930 billion levels.
This consolidation phase may precede the bull cycle peak, which is expected to reach $3.39 trillion.
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Even more interestingly, Ash Crypto says that Bitcoin’s dominance appears to have peaked, suggesting that altcoin season is coming. However, he warned that ahead of this potential surge, the market whale There may be attempts to scare retail investors by manipulating prices.
As of this writing, ETH is trading at $3,215, up more than 3% in 24 hours. Other altcoins such as XRP, Solana (SOL), and Cardano (ADA) have also gained 5%, 3%, and 5.3% respectively during the same time period.
Considering Ash Crypto’s analysis, it remains to be seen whether altcoins will consolidate further or correct again before these digital assets post the most significant gains in history.
Featured images from DALL-E, charts from TradingView.com
