“Analysts Anticipate Altcoin Surge Following Recent Market Plunge”

Crypto evaluators conjecture that the substantial weekend leverage liquidation, which eradicated billions of dollars from the crypto ecosystem, may have just laid the groundwork for “altseason 3.0.”

“Every significant surge in crypto has encompassed abrupt 30% to 60% corrections along the journey,” noted analyst and researcher “Bull Theory” on Monday.

March 2020 experienced nearly 70% erased from markets in the pandemic-triggered black swan occurrence, and May 2021 witnessed over 50% eliminated. There were at least five other instances of 30% to 40% altcoin declines during the preceding bull market cycle.

The market downturn in April this year prompted many to deem it the onset of the bear market. However, “each of those downturns appeared as the conclusion [and] each was succeeded by the most robust rallies of the cycle,” the analyst remarked.

Altcoins will recover

Altcoins typically endure the harshest impacts during these monumental market corrections, as was evident over the weekend with XRP (XRP) dropping at least 18%, Solana (SOL) 22%, Dogecoin (DOGE) 28%, Cardano (ADA) 25% and Chainlink (LINK) 26% in merely a day.

After the March 2020 flash decline, “we experienced a significant altseason where altcoins surged 25x to 100x,” stated analyst Ash Crypto, adding, “I believe it will transpire again.”

Related: ‘Crowd FUD’ is the optimal indication for when to acquire Bitcoin: Analyst

Meanwhile, analyst “Merlijn The Trader” recognized a configuration for “altseason 3.0” with a monthly bullish MACD crossover on the BTC/altcoins chart, mirroring the same trend observed in 2017 and 2021.

Total crypto cap dips back below $4T

The aggregate crypto market capitalization retreated back below the significant $4 trillion threshold on Tuesday, despite the optimistic sentiment surrounding the rebound and a potential altseason.

Bitcoin (BTC) is leading declines with a 1.4% drop on the day as it fell below $113,500 on Tuesday morning. This occurs simultaneously as several altcoins reported daily gains.

Moreover, Bitcoin dominance, another crucial metric of altcoin performance, is forming its first red weekly candle in five weeks as it declined below 59% on Tuesday, according to TradingView.

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