Altcoins such as Tron (TRX), Avalanche (AVAX), Polkadot (DOT), Internet Computer (ICP), Polygon (POL), Filecoin (FIL), and Celestia (TIA) are expected to soar once the current market correction ends.
This optimistic outlook comes from Santiment, a leading blockchain analysis platform, following a significant sell-off across the crypto market. The correction has hit Bitcoin (BTC) and altcoins hard, but Santiment believes the altcoins will recover soon.
Also Read: Altcoin Season May Have Arrived as Trump’s Victory Spurs Bullish Momentum in Crypto Market
Current Market Correction and Its Impact on Altcoins
The recent correction follows Bitcoin’s failure to maintain higher highs, as it briefly crossed the $100,000 mark before dropping to the $97,000 level in the past 24 hours. During the same period, altcoins experienced sharp losses, with several digital assets substantially declining.
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Tron (TRX) dropped by 17.68%, Avalanche (AVAX) fell by 13.85%, Polkadot (DOT) lost 16.47%, and Internet Computer (ICP) saw a 14.89% decrease. Other altcoins, such as Polygon (POL), Filecoin (FIL), and Celestia (TIA), also witnessed notable declines, losing up to 18.35% in value.
Source: Santiment
While such losses have been considered rather large, the media says it is the necessary market turning point called by Santiment. The blockchain platform also noted that overbought signals accompany periodic low points in altcoins.
Bitcoin, other leading cryptocurrencies, meme coins, and their Relative Strength Index (RSI) signal have been stretched beyond typical extreme levels. This situation usually indicates that the market is overbought and needs to be corrected to sustain its health and future development.
Potential for a Strong Altcoin Rebound
Santiment also predicts a sharp rebound in altcoin prices will likely occur once the current market correction stabilizes. The platform suggests that retail traders, reacting out of fear and selling their holdings, may set the stage for a strong recovery as large investors or whales take advantage of the dip. Historically, such market movements have often been followed by a bullish reversal, especially when the broader market remains positive.
Source: TradingView
For now, the RSI levels for Bitcoin have returned to a more balanced position, hovering at 57.05. This suggests that while the market correction continues, the market remains bullish mainly. If Bitcoin stays above the $100,000 threshold, the altcoin market may quickly recover, leading to further upward movement in the coming weeks.
Also Read: CZ’s Cryptic Post Sparks Speculation About Altcoins’ Rise in Crypto Market
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.