Prominent Analyst Talks About Why Sharp Altcoin Corrections Still Signal Healthy Uptrends

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.

Read also:

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.

Check $RECQ Meme Coin

Sponsored: Invest Responsibly, Do Your Own Research.
Serves as the base currency for all transactions within the Rebel Satoshi platform
ICO stage, offering tokens at a discounted price
Facilitates a smooth and efficient economy within the arcade, supporting both arcade and in-game transactions.
Grants access to a diverse range of gaming experiences in the Rebel Satoshi Arcade,
Contributes to a decentralized, community-driven RebelSatoshi platform that integrates gaming with elements of revolution, freedom, and unity, appealing to users who value such principles.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.


Vignesh Karunanidhi
Vignesh Karunanidhi

Seasoned crypto writer with deep passion for blockchain and cryptocurrency