Crypto: Altcoins on the upswing after the drought

After their lackluster performances in recent weeks, some altcoins have been able to breathe a sigh of relief with Ripple’s victory over the SEC. According to some analysts, the long drought for these assets is now about to give way to a fruitful period. They believe that the long-awaited altcoin season could finally be upon us very soon.

Will altcoins soon rule the market?

The altcoins’ hour of glory is upon us: that’s the conclusion we can draw from Josh Olszewicz’s technical analysis. Formerly a researcher at Valkyrie Investments, the trader has taken a close look at the performance of altcoins excluding ether and the main stablecoins. He points out that “the market capitalization of altcoins shows a kind of triple-bottom situation, or an inverted head-and-shoulders situation”.

Indeed, according to data from analysis platform TradingView, the daily altcoin capitalization chart shows the left shoulder trough forming at $188.4 billion in June 2022. The head trough formed in December of the same year at $173.23 billion. As for the right shoulder, it formed in June 2023 at $177.36 billion. The market cap of the altcoins analyzed is currently stagnating at around $230 billion.

Crypto winter seems to be behind us and soon we might see an "altcoin season," according to technical analysis by @CarpeNoctom. Reports @godbole17.https://t.co/tBWeOXvFbT

— CoinDesk (@CoinDesk) August 11, 2023

Confirmation before the summer

While technical analysis signals point to an upward trend, Josh Olszewicz is not getting carried away. Instead, he is waiting for confirmation before drawing any conclusions. “I’m not convinced by the head-and-shoulders pattern taking shape in the middle of this consolidation. I’m waiting for a break above $300 billion,” he declared.

The future of altcoins will depend on the cryptocurrencies’ next price movements. The first possible scenario is a further decline from the $230 billion mark. In this case, the inverted head-and-shoulders pattern would cancel out, much to the dismay of altcoiners, who remain on tenterhooks for a future rise.

The second scenario is the most promising. The perfect scenario would be a rise in the market capitalization of altcoins. The market cap of these assets should break the $300 billion barrier. If this scenario materializes, it would mark the beginning of the altcoin season.

Announced by many experts, the altcoin season could soon be upon us, as Josh Olszewicz’s analysis proves. However, some observers remain sceptical. Benjamin Cowen, for example, is unconvinced by the potential growth in altcoin valuations.