The altcoin market is poised for significant gains as it holds major support levels, according to crypto analyst @Ashcryptoreal on X. The analyst suggests that buying altcoins now could yield substantial returns over the next 6-12 months. Several factors support this bullish outlook, including the testing of major support levels, the launch of ETH ETFs, and recent market capitulation.
Currently, the altcoin market cap, excluding Bitcoin and Ethereum, is testing major support levels. These levels often act as a floor, preventing further declines and signaling potential rebounds. The current value of the altcoin market cap is around $640.56 billion, reflecting a 5.64% increase, indicating a strong uptrend.
The anticipated start of ETH ETF trading on 23rd July is another influential factor. Major firms such as Fidelity Investments, Franklin Templeton, Invesco, 21Shares, and VanEck are set to begin trading their spot Ethereum ETFs. This initiative reflects the growing institutional interest in Ethereum and altcoins. The approval of these ETFs is expected to increase institutional demand, potentially leading to a supply squeeze as the Ethereum Exchange Reserve is currently at multi-year lows.
The altcoin market recently experienced capitulation, a phase where investors sell off their holdings, often signaling the end of a downtrend. This capitulation, combined with the testing of support levels, suggests that the market may be poised for a major rebound. Historical data shows that after such phases, markets often enter a new bull cycle, potentially leading to substantial gains for investors.
Projections for the altcoin market indicate continued growth. The market has shown a pattern of cyclical bull and bear markets, with each cycle reaching higher peaks. Analysts expect the next major market top to occur around 2024-2025, suggesting growth potential in the coming years.
The combination of testing support levels, the launch of ETH ETFs, and the recent capitulation in the altcoin market creates a favourable environment for potential gains. The overall market is optimistic about the altcoin market’s future, expecting a bull run in the near term. The continued growth of the altcoin market highlights the increasing interest and investment in smaller and emerging cryptocurrencies.
