Analyst: “Sell Your House, Sell Your Car, and Buy This”

A well-known crypto trader suggests that altcoins may currently be in a prime accumulation phase, highlighting a rare buy signal that hasn’t been triggered at such low levels in the past three years.

On August 28, crypto trader Luke Martin shared with his 331,500 followers on X, “Altcoins are at the ‘sell your house and buy more’ level right now.” Martin pointed out that when Bitcoin was at similar levels in the summer of 2020, its price skyrocketed sixfold in the latter half of the year. “The price shot up vertically from $10,000 to $60,000 within six months,” he noted.

Meanwhile, the anonymous crypto trader Mags mentioned that the altcoin market cap has formed a descending wedge pattern, which typically indicates a continuation of an upward trend. According to TradingView data, the total altcoin market cap stood at $195.07 billion at the time of writing. Michael van de Poppe, founder of MN Consultancy, emphasized in an August 25 post on X that this value is “still 47% below its peak.”

Caution Among Investors Persists

The altcoin market cap had peaked at $446.85 billion in November 2021. Among the top 10 cryptocurrencies, Toncoin (TON) experienced the most significant drop in the last seven days, plummeting 15.31% to $5.57 following the arrest of Telegram CEO Pavel Durov in France on August 24.

Other altcoins have also seen notable declines since their year-to-date highs in March. CoinMarketCap data shows that Solana’s price has dropped 29% from its March peak to $143.20, while XRP has fallen 19.7% during the same period, now trading at $0.57.

Overall, investor sentiment in the crypto market remains cautious, as indicated by the Crypto Fear and Greed Index, which has slipped into the “Fear” zone, dropping 10 points from 39 a week ago to 29.

Meanwhile, Bitcoin dominance has slightly decreased by 0.12% over the past week, settling at 57.20%. However, according to Benjamin Cowen, founder of Into The Cryptoverse, while the target for Bitcoin dominance is 60%, he believes that 60% could be the peak. “I don’t think it’s going to 70%; my target for Bitcoin dominance is 60%,” Cowen explained.

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