Altcoins
Analysts predict a slow recovery ahead
Renowned cryptocurrency analyst Daan Crypto recently shared his opinion on the current state of altcoins. In the recent post by X, the analyst commented that altcoins have dropped in value at 40-90% and this is similar to previous market crashes, but this time it is happening at a slower pace.
The current bearish trend affecting most alts has not been as sharp as that seen at the beginning of the COVID-19 pandemic, but the outcome has not been much different for most tokens. Daan Crypto also pointed out that the current bearish movement is relatively slow compared to previous ones, but pointed out that their highs are steep.
One of the notable changes in the current market compared to similar situations in the past is that, in the case of altcoins, they did not rise as high before the crash. Therefore, this observation is consistent with Daan Crypto’s assessment that the market is still ahead of where it normally is at this stage of the cycle, including BTC and other altcoins.
The Altcoin market is late to the start of the cycle
Looking at the performance of 2023, Daan Crypto attributed it to be very strong, especially for the first year after a year bearish market, compared to the final months of 2019. He compared the year 2024 to the year 2020, which initially fell in the middle of the year but managed to recover and even recover more by the end of the year. The current year also resembles such a trend, which means that it is better to prepare for 2024 taking this experience into account.
The analyst concludes that this is due to over-marketing bullish during startup it may take longer for supply to correct itself and begin to align with past cycles. The slow adjustment phase can be painful, but it is considered a natural cycle that will eventually lead to a market rebound.
Daan suggested that weathering current market conditions is crucial to the long-term health of the cryptocurrency ecosystem. Investors should prepare for continued volatility and remain vigilant for future opportunities as the market evolves. This cautious optimism highlights the importance of patience and resilience in navigating the current market landscape.