Yeliz Akmaca 
Altcoin markets surprised investors with a sharp weekend decline. XRP lost 18%, Solana 22%, Dogecoin 28%, Cardano 25%, and Chainlink 26% in a single day. Analysts note that such sharp declines often occur just before altcoin seasons. This recent volatility has refocused attention on potential altcoin rallies.
Could History Repeat Itself?
Analyst and researcher Bull Theory stated on Monday, “Every major expansion in crypto has included sharp 30%–60% corrections along the way.” In March 2020, during the pandemic “black swan” event, markets lost nearly 70% of value. In May 2021, more than 50% was wiped out. During the last bull cycle, several altcoins saw 30%–40% drops.
Analyst Ash Crypto noted that following the March 2020 crash, altcoins experienced massive growth, some increasing 25x to 100x, adding: “I believe this could happen again.” Meanwhile, Merlijn The Trader identified a setup for “Altseason 3.0” using the monthly bullish MACD crossover on the BTC/altcoin chart—a pattern similar to those in 2017 and 2021.
Market Data and Altcoin Recovery
Despite bullish sentiment about recovery and a potential altcoin season, total crypto market capitalization fell below the psychological $4 trillion mark on Tuesday. Bitcoin dropped below $113,500, losing 1.4% intraday, while several altcoins recorded daily gains. Bitcoin dominance also fell below 59%, marking its first red weekly candle in five weeks.
Key Notes for Investors:
-
Altcoins are often the hardest hit during sharp market corrections but tend to recover quickly.
-
Historical data indicates altcoin seasons are often preceded by steep declines.
-
Traders should closely monitor MACD signals and overall market capitalization.
Analysts believe that if historical patterns repeat, a strong Altseason 3.0 could emerge soon.
Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.