Recent data from Santiment, a prominent market intelligence firm, indicate that the altcoins may enter a “prime buying” phase. According to Santiment, more than 85% of the altcoins they track are currently positioned in what is historically considered a “buying opportunity zone.”
Sentiment And Technical Indicators Favor Altcoins
This assessment is based on the Market Value to Realized Value (MVRV) ratio, which measures the profitability of held assets over one-month, three-month, and six-month periods. Such data suggest that despite recent market volatility, the potential for a significant bullish rally in the altcoin sector remains high.
According to our model, the mid-term gains and losses by average wallets indicate heavy realized losses across most #altcoins. Over 85% of assets we track are in a historic opportunity zone when calculating the market value to realized value (MVRV) of wallets’ collective… pic.twitter.com/NogkCSH5PG
— Santiment (@santimentfeed) April 25, 2024
The timing of this potential uptick is particularly noteworthy. It aligns closely with the aftermath of Bitcoin’s latest Halving event, which is known to positively impact the broader cryptocurrency market.
Santiment’s analysis points to heavy realized losses across most altcoins, which typically precede a recovery as markets stabilize and rebound. This downturn cycle, followed by a strong recovery, offers strategic buyers an opportune investment moment. Santiment particularly noted:
It may be justified to buy while there is growing fear seeping in from the crowd after all of these market cap dips.
The sentiment surrounding altcoins is increasingly optimistic, with various cryptocurrency enthusiasts and analysts highlighting the potential for substantial gains.
On social platform X (formerly Twitter), voices like user ‘Nagato’ advocate for patience and strategic investment in altcoins. This suggests the current market consolidation phase could soon lead to significant upward movements.
Crypto analyst Moustache shares this perspective, noting parallels between current market conditions and those preceding the last major altcoin season nearly four years ago.
During that period, key technical indicators such as the Gaussian Channel and EMA 10 provided strong buy signals, which were validated by the ensuing market behavior.
The last time Altcoins broke out of the Gaussian Channel and retested it was almost 4 years ago.
After that, we experienced a strong Altcoin-Season.
Back then we also saw a buy signal in the super trend as well as the EMA 10, which withstood the entire run.
pic.twitter.com/ddcikhSqwz
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖
(@el_crypto_prof) April 25, 2024
Market Watch: Altcoins Performance Amidst Bitcoin’s Dominance
Meanwhile, the broader market metrics support this optimistic outlook. Despite Bitcoin’s dominance at around 54% of the total market capitalization, the global altcoin market cap has managed to remain strongly above $1 trillion, with a dominance of roughly 11.54%.
Recent performance data for altcoins like XRP and Dogecoin, which have seen appreciations of 5.9% and 3.1% over the past week, further validate the sentiment that the altcoin market may be on the brink of a breakout.
Such movements underscore cryptocurrency markets’ dynamic and often cyclical nature, where sentiment and technical indicators can herald upcoming trends.
Featured image from Unsplash, Chart from TradingView