After their lackluster performances over the past few weeks, some altcoins were able to breathe with Ripple’s victory against the SEC. The long scarcity of these assets is now on the way to giving way to a fruitful period according to some analysts. The latter believe that the long-awaited altcoin season could finally show the tip of its nose very soon.
Altcoins soon to dominate the market?
The hour of glory of altcoins has come: this is the conclusion that we could draw from the technical analysis of Josh Olszewicz. Formerly a researcher at Valkyrie Investments, the trader was indeed interested in the performance of altcoins excluding ether and the main stablecoins. He points out that “the market capitalization of altcoins shows a kind of triple bottom situation or a reverse head and shoulders situation”.
Indeed, according to data from the analytics platform TradingView, the altcoin daily capitalization chart shows the formation of the left shoulder trough at $188.4 billion in June 2022. The head trough formed in December of the same year at $173.23 billion of dollars. As for the right shoulder, it took shape in June 2023 at 177.36 billion dollars. The market cap of the analyzed altcoins is currently stagnating around $230 billion.
A confirmation before the summer season
If technical analysis signals predict an uptrend, Josh Olszewicz is not getting carried away. Instead, the analyst is waiting for confirmation before drawing a conclusion. “I’m not convinced by the head and shoulders pattern that’s emerging amidst this consolidation. I expect a break above 300 billion dollars” did he declare.
The future of altcoins will depend on the next price movements of these cryptocurrencies. The first possible scenario is a further drop from $230 billion. The reverse head and shoulders would cancel out in this case much to the chagrin of altcoiners who remain in expectation of a future rise.
The second scenario is the most promising. The perfect scenario would be a rise in the market capitalization of altcoins. The market cap of these assets must cross the 300 billion dollar mark. If this scenario comes true, it would mark the start of the altcoin season.
Announced by many experts, the altcoin season could soon show itself as Josh Olszewicz’s analysis proves. Some observers, however, remain skeptical. This is the case of Benjamin Cowen who is not convinced by a potential growth in the valuation of altcoins.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
