Altcoin Market in 2023: Is the Bottom In or More Pain to Come?
Altcoin Market– A well-known crypto trader, Luke Martin, has pointed out that altcoins may be in a key accumulation phase, indicating that a buy signal has appeared at levels not seen in over three years. On August 28, Martin told his 331,500 followers on X (formerly Twitter) that altcoins are currently at the sell your house to buy more level.
Historical Buy Signal Resurfaces
Martin emphasized the significance of this signal by recalling the summer of 2020 when Bitcoin was at a similar level. Back then, Bitcoin’s price surged from $10,000 to $60,000 within six months, marking a sixfold increase. This historical context suggests that a similar trend could be in the making for altcoins.
Falling Wedge Pattern: Bullish or Bearish?
Meanwhile, pseudonymous trader Mags highlighted that the altcoin market cap is forming a falling wedge pattern—a technical setup typically seen as a bullish continuation pattern. The total altcoin market cap stands at $195.07 billion as of the latest data from TradingView. However, it’s still down 47% from its all-time high of $446.85 billion in November 2021.
Top Cryptocurrencies Facing Declines
Among the top 10 cryptocurrencies, Toncoin (TON) has experienced the steepest decline, dropping 15.31% to $5.57 in the past week. This drop follows the arrest of Telegram CEO Pavel Durov in France on August 24. Other major altcoins, like Solana (SOL) and XRP, have also seen significant declines since their March year-to-date highs. Solana has fallen 29% to $143.20, while XRP has dropped 19.7% to $0.57 during the same period.
FAQs
Why does Luke Martin consider this a prime time to buy altcoins?
Luke Martin points out that a buy signal has triggered at levels not seen in over three years. He draws a comparison to the summer of 2020, when a similar signal for Bitcoin led to a significant price surge, suggesting that altcoins could experience a similar upward movement.
What is a falling wedge pattern, and why is it important for altcoins?
A falling wedge pattern occurs when an asset’s price moves between two downward-sloping trend lines. This pattern is typically considered bullish because it often precedes a price breakout. In the context of altcoins, this pattern could indicate that the current downtrend might reverse, leading to a price increase.
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