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As the <a href="https://coingape.com/markets/4-ai-based-altcoins-outpacing-bitcoin-ethereum-xrp-in-2024/">altcoin</a> market enters a prolonged re-accumulation phase, signs point to an impending major rally. 
Although the market is in the bearish territory at the moment, past trends and analysis show that there is immense potential for altcoins to rise. As per Mikybull, a crypto analyst, the 2020 price pattern is forming, suggesting that a massive price surge is imminent. 
<h2 id="altcoins-re-accumulation-phase">Altcoins Re-accumulation Phase</h2> 
Sentiment in the market towards altcoins is currently bearish with many investors holding a negative view of the market. However, this kind of sentiment is typical for <a href="https://coingape.com/markets/5-altcoins-to-buy-on-the-brink-of-rocketing-10000-into-10000000-this-month/">altcoins</a> re-accumulation phases and occurs just before market reversals. In support of this view, DeFi analyst Cyril points out that the current toxic sentiment is a classic setup for major market rallies. 
He emphasizes that the time to de-risk was earlier in the cycle, not now, as the market has only been rejected from an initial target, with further targets still in play. 
Furthermore, it has been observed that each major bull cycle has concluded with a significant drop in <a href="https://coingape.com/category/news/bitcoin-news/">Bitcoin’s</a> market share, which has opened up huge opportunities in the altcoin market. This, according to him is something that is likely to happen in the forthcoming months as well hitting a peak of October 2025.&nbsp; 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 From the 2018 and 2022 lows to the halvings in 2020 and 2024, there have been 510 days. 
 Both bear markets lasted 370 days, highlighting a cyclical pattern in crypto. 
 If this repeats, the next bull market could peak in October 2025, suggesting potential for altcoin growth. <a href="https://t.co/PsKPpd3xgr">pic.twitter.com/PsKPpd3xgr</a> 
 — Cyril – DeFi (@cyrilXBT) <a href="https://twitter.com/cyrilXBT/status/1804555599226753281?ref_src=twsrc%5Etfw">June 22, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
&nbsp; 
According to the analyst, the market makers may try to deceive investors by saying that the bull market is over, but the current re-accumulation phase is an indication of the contrary. Cyril expects that the sellers who are forced to sell at a lower price will buy back at a higher price, thus, supporting the idea of altcoin surge. 
<h2 id="strong-technical-indicators-and-historical-patterns-strong">Technical Indicators and Historical Patterns</h2> 
The technical analysis also backs the bull’s view of the market in regard to the altcoins. The 50-day and 200-day moving averages (MAs) show bullish trends, but recent price actions have neared these MAs, implying sideways movements. However, as seen from the chart, prices are making higher lows while the MACD is making lower lows indicating that the bullish trend may continue. 
Moreover, according to Mikybull, the market is now in the consolidation stage, with prices penetrating short-term MAs but remaining above long-term MAs. This phase, which is usually preceded by a ‘final shake out,’ is characterized by selling by the weak hands, thus paving way for a new bullish phase. 
<img decoding="async" class="aligncenter" src="https://pbs.twimg.com/media/GQrY9IWXUAAQWH9?format=jpg&amp;name=small" alt="Image" width="675" height="383"> 
Historical data reveals that previous cycles with similar technical setups led to significant price increases in altcoins. For instance, in past cycles, according to crypto analyst Michael van de Poppe, altcoins like Solana (SOL), <a href="https://coingape.com/markets/3-altcoins-to-buy-likely-to-turn-1000-into-100000-in-2024/">Fetch.ai (FET)</a>, and Render Token (RNDR) saw gains of 500%, 650%, and 300%, respectively.&nbsp; 
This time round, as per a Coingape report, some of the trending altcoins that may lead this rally and have a potential 20,000% profit are <a href="https://coingape.com/markets/3-trending-altcoins-for-20000-profit-before-december/#:~:text=Uncover%20three%20trending%20altcoins%2C%20including,returns%20with%20promising%20growth%20prospects.">LayerZero (ZRO)</a>, zkSync (ZK), and Solana (SOL). 
<h2 id="gaussian-channel-points-to-breakout">Gaussian Channel Points to Breakout</h2> 
Subsequently, comparing the current market to previous cycles, such as those in 2017 and 2021, reveals striking similarities. Both periods began with consolidation phases followed by steep, parabolic rises in market cap. These formations typically indicate accumulation and a build-up of buying pressure, leading to breakouts. 
The present market structure mirrors these historical patterns, with a consolidating triangle formation and strong baseline support.&nbsp; 
<img decoding="async" class="aligncenter" src="https://pbs.twimg.com/media/GQsJbSeXQAAwsTF?format=jpg&amp;name=small" alt="Image" width="670" height="328"> 
If this pattern holds, projections for 2024 suggest another significant rally. Additionally, the 3-week Gaussian Channel recently shifted from red to green, indicating a transition from bearish to bullish conditions. Historically, such transitions have preceded robust market rallies. 
Read Also: <a href="https://coingape.com/markets/heres-altcoins-next-100-billion-opportunity/?utm_source=cgtelegram">Top 4 Altcoins To Buy That Can Hit A $100 Billion Market Cap</a> 
The post <a href="https://coingape.com/altcoins-trend-hint-at-upcoming-explosive-rally-heres-why/">Altcoins Trend Hint at Upcoming Explosive Rally, Here’s Why</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Altcoins Trend Hint at Upcoming Explosive Rally, Here’s Why

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