In his latest update, Michael Van De Poppe, a leading analyst, delves into the current state of the altcoin market. Noting the current market consolidation, he highlights the diverse performances among altcoins, some of which are showing strength and others are yet to make substantial moves.
Parallels with historical trends: echoes of 2015 and 2019
Van De Poppe draws parallels between current market conditions and the end of 2015 and 2019. He highlights Ethereum's impressive rise from $1 to $14 in 2015, foreshadowing a notable rise to $1,400 in 2017.
The analyst suggests there is still potential for comparable returns in the current cycle, hinting that projects with initial returns of 5 to 10 times are in their early stages.
Correction standards amid promising returns
Despite the potential for significant returns, Van De Poppe highlights the usual corrections during the initial stages of bullish movements. Taking Ethereum's 2020 DeFi summer as an example, he anticipates similar trends in 2024.
Comparing Ethereum's past price action to Chainlink's current movements, you see a slight 20% correction, indicating a potentially clearer trend with a 30% correction. Van De Poppe highlights the opportunity to identify entry points during corrections.
Focusing on Arbitrum, which is currently experiencing a corrective move while resting on support, Van De Poppe warns that altcoins experiencing 30-50% declines during this cycle should be viewed as entry opportunities rather than reasons for concern.
Strategic Positioning: Navigating Uncertainties for Altcoin Investment
Emphasizing strategic positioning, Van De Poppe suggests that despite the uncertainties, altcoins could still be favorable for investment. He addresses the macroeconomic factors influencing Bitcoin's continued rise and how they could affect altcoins.
Van De Poppe's advice to investors is clear:
โThis correction ends in support areas with higher timeframes, which means we will likely continue from here as those support areas with higher timeframes are the areas to look for potential entries. Don't be afraid, if an altcoin falls between 30% and 50% at this stage of the cycle, it's time to look for your entries.
