Polkadot (DOT) and Other Altcoins Show Signs of Improving Fundamentals; Analyst Shares Points Signaling a New Rally
Prominent crypto analyst Rekt Capital spotlights improving fundamentals and technicals across altcoins that could signal a broader trend change ahead.
What you'll learn 👉
Altcoin Market Attempts Base Breakout
First, analysis shows the total altcoin market capitalization has rebounded after retesting a key support zone as new demand last week:
“Altcoin Market Cap was able to hold the base as support, despite downside wicking below it briefly…In fact, the Altcoin Market Cap has been able to reverse to the upside and is now challenging the top of its pattern for a breakout.”
Reclaiming this area keeps the market structure intact and strengthens the foundations for its continuation. The timing aligns well with historically optimal entry points.
Positioning For Q1 Hype Cycles
In particular, Rekt Capital notes altcoins tend to bottom mid-quarter before rallying into peak hype late-quarter around mainnet launches and project updates.
So with Q1 kicking off, sentiment extremes give way to renewed altcoin rallies as developments hit. Rekt spots both chart and on-chain patterns, indicating the beginnings of renewed accumulation.
For example, Polkadot’s native DOT token has bounced 12% after a successful demand area retest. Follow-through towards higher resistance could validate a trend change as analysts monitor price action into the quarter’s end.
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Show more +So in summary, data suggests the brutal altcoin bear market of 2023 may have cleaned out weak hands and frothy excesses, setting the stage for rotation back into micro opportunities.
The altcoin market cap base breakout attempt combined with bullish seasonal timing argues further upside could emerge on confirmation of trend change. For now, traders await resolution if conviction truly returns.
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