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Altcoins are facing significant challenges as crypto markets face widespread declines, with Ethereum (ETH) leading the way with losses of nearly 20%.
The decline comes after Ethereum has repeatedly failed to break above the key resistance level of $4,000, a barrier that has proven formidable in recent months. cryptocurrency It will reach new record levels, just like Bitcoin (BTC) did at the end of 2024.
Altcoin mid-cycle correction: A path to recovery?
Market expert Ash Crypto recently provided insight into the current state of altcoins in a social media post on X (formerly Twitter), suggesting that altcoins are undergoing a “mid-cycle correction.”
According to Ash Crypto, this stage is a natural part of the bull market cycle and could see these digital assets regaining previously lost value and potentially poised for even greater profits.
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in him social media postsexperts highlighted historical precedent, pointing out that similar price movements were seen in January 2021, just before the start of the altcoin season that attracted investors.
Despite the recent volatility, Ethereum and other altcoins are showing slight signs of recovery, with ETH managing to soar above $3,200 and rebounding from its closest support level at $3,100.
This recent rally has helped avoid further losses and raised expectations among traders. However, Ash Crypto warns that further declines may be around the corner before further declines occur. sustained recovery It can be established.
Market whales could drive out retail investors
In his analysis, Ash Crypto predicted that altcoins could experience one last market correction before entering full bullish mode later this year.
The expert referred to a chart he shared showing the market capitalization of altcoins excluding altcoins. Bitcoin And Ethereum showed potential for consolidation between the $926 billion and $930 billion levels.
This correction phase could precede a move towards the peak of the bullish cycle, which is estimated to reach up to $3.39 trillion.
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Adding to the intrigue, Ash Crypto stated that Bitcoin's dominance seems to have reached its limit, suggesting that altcoin season is imminent. However, before this potential surge, the market whale They may try to manipulate prices and drive out retail investors.
As of this writing, ETH is trading at $3,215, up over 3% in the 24-hour time frame. Other altcoins such as XRP, Solana (SOL), and Cardano (ADA) also rose 5%, 3%, and 5.3%, respectively, in the same time frame.
Considering Ash Crypto's analysis, it remains to be seen whether further consolidation or another correction will occur for altcoins before the most notable gains in history for these digital assets.
Featured image from DALL-E, chart from TradingView.com
