- The altcoin market has seen a significant correction, falling 12.5% from its peak.
- Analyst predictions suggest a revival driven by new ETF listings and macroeconomic factors.
The altcoin market is currently experiencing a notable correction, with the overall market capitalization declining from a high of $1.2 trillion in March to $1.05 trillion now, marking a 12.5% decline. .
This downturn has significantly affected major altcoins, with some experiencing drops of over 40% in the last two weeks alone.
Michael Van De Poppe, a well-known cryptocurrency analyst, recently analyzed the volatility of the altcoin market and its future prospects in his latest article. video analysis.
According to Van De Poppe, the high volatility of the altcoin market is not new and is characteristic of both significant gains and severe corrections.
The recent drop has led many to question the future of altcoins and whether the downward trend will continue. Van De Poppe attributes the current market instability to a couple of key factors, particularly affecting major players like Ethereum.
Factors that influence the stability of altcoins
A major factor contributing to the uncertainty in the altcoin market, as highlighted by the analyst, is the delay in trading of the Ethereum spot ETF, despite its approval.
This delay has caused confusion and instability in the market, as traders and investors are unsure when they will be able to participate in these regulated investment vehicles.
Van De Poppe suggests that once the spot ETF begins trading, it could generate greater investor interest and potentially trigger a market rally, similar to reactions seen in previous ETF launches.
Furthermore, macroeconomic events such as the Consumer Price Index (CPI), Producer Price Index (PPI), and Federal Open Market Committee (FOMC) announcements also play an important role in shaping market sentiment.
Recent data suggesting a possible easing of inflationary pressures could indicate future rate cuts by the Federal Reserve, which historically benefits altcoins. These assets tend to perform well during periods of quantitative easing and low interest rates, when global liquidity is high.
Despite the current challenges, Van De Poppe is optimistic about a possible revival of the altcoin market.
It anticipates that the recession will end soon, driven by the early listing of the Ethereum spot ETF, which is likely to significantly increase market confidence and interest. This expected change could mark the beginning of the altcoin recovery.
Focus on Solana: a case study
Looking closer solana [SOL], a major altcoin, has seen a significant drop of over 50% since its peak in March this year, currently trading at $146.52. However, recent activities suggest that a slight change may be afoot.
In the last 24 hours, Solana has experienced a 1.6% increase in its price.
At the same time, his open interest It has also increased by 0.36% in the same period, with a notable 68% increase in open interest volume with a valuation of $3.83 billion.
This positive trend coincides with SOL’s NFT transaction recently outperforming Bitcoin and Ethereum, as reported by AMBCrypto.
Meanwhile, despite a small decrease in the number of
active addresses From over 950,000 to 902,000 over the past week, indicating a reduction in network activity, market sentiment could be changing.
Read Ethereum [ETH] Price prediction 2024-25
Ali, another prominent crypto analyst, highlighted a key support level for Solana at $141, noting a buy signal on the daily chart.
If this support holds, Solana could rally in the short term, suggesting that not all hope is lost for this altcoin.
Next: Ethereum’s big clue: Last chance to buy ETH at $3,500?
This is an automatic translation of our English version.
