Altcoins undergoing steep corrections of 30–50% while in ongoing uptrends may seem counterintuitive, but these temporary pullbacks represent prime re-entry opportunities, according to founder of MN Trading Michaël van de Poppe.
Van de Poppe explains that the early stage of a crypto cycle involves sharp ascents, often followed by multi-day or multi-week altcoin retracements. But zooming out reveals these consolidations align with higher timeframe support levels that enable trend continuation.
He notes late 2015 and late 2019 as historical examples when major altcoins like Ethereum endured sizable yet healthy pullbacks before exploding 10x or more in subsequent years. Despite sharp drops, Ethereum held key supports and proceeded to surge from $1 to $1,400 at its peak.
Van de Poppe argues today’s landscape mirrors these periods. Recent rallies in Chainlink and Arbitrum, for instance, are now consolidating above key supports after less than a 5-week climb. These bouts of volatility are normal and temporary dips should be viewed opportunistically.
Van de Poppe contends we are only in the first wave of this cycle’s advance. The major DeFi explosion of 2020 could return even stronger in 2024. Projects gaining 5–10x currently still have massive runways ahead, just as Ethereum did after its initial uptick.
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In summary, traders should anticipate sharp but fleeting altcoin corrections as par for the course at this cycle stage. Rather than a warning signal, these returns allow savvy investors to pinpoint re-entry levels and capitalize on the greater upside yet to come.
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