Altcoins are poised for a potential rally after a month-long crypto correction, according to analytics firm Santiment. The firm’s model indicates that the majority of altcoins are currently in a historic opportunity zone, with heavy realized losses across most assets. The market value to realized value (MVRV) of wallets’ collective returns over various time frames suggests that altcoins may be undervalued and primed for a rally.
Santiment advises traders to consider buying altcoins while there is growing fear in the market following recent dips in market cap. Despite choppy conditions, traders are starting to favor crypto assets that have held up well, such as Bitcoin, over volatile altcoins like Dogecoin. Dogecoin, for example, is currently trading at $0.149, down over 34% from its 2024 high.
While altcoins are in a favorable position for a potential rally, Santiment notes that some networks, like Cardano, have seen a drop in active wallets. Overall, the total amount of non-empty Bitcoin wallets is rapidly growing, indicating continued interest in the leading cryptocurrency.
As the market prepares for a potential altcoin rally, investors are advised to do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. The Daily Hodl does not recommend buying or selling any cryptocurrencies and reminds readers that all transfers and trades are at their own risk.
In conclusion, Santiment’s analysis suggests that most altcoins are in a prime position to rally, offering traders an opportunity to potentially capitalize on the market’s recent downturn. Stay informed and subscribe to receive email alerts for the latest updates on cryptocurrency trends.
