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Altcoins will explode in early 2025: the "grand finale" is approaching
As the New Year approaches, altcoins in 2025 will be “very bullish.” The industry is expected to explode soon and kick off the long-awaited “altcoin season” after retesting key support levels.
Altcoins retesting key support levels
In recent market performance, many altcoins have struggled to achieve significant gains. However, some market observers predict that altcoins will start rising as early as January 2025.
Driven by the post-U.S. election rally in the cryptocurrency market, the total market cap of cryptocurrencies excluding Bitcoin and Ethereum broke a three-year downtrend in mid-November, surpassing the $788 billion annual high. During this month’s rebound, the crypto industry surged to $1.1 trillion, hitting the highest market cap since 2021.
Since then, altcoins have struggled over the past two weeks, with Bitcoin falling below the $100k mark, down nearly 26%, but despite recent poor performance, they remain above key levels.
Crypto Jelle pointed out that the industry has broken through and retested its “main trend line while destroying all leverage.” The analyst emphasized that “financing has been completely reset,” sentiment is at its lowest point, and charts look promising, adding that he is “very optimistic about 2025.”
He also noted that the price movement of altcoins “is very similar” to Bitcoin’s first major correction in 2021. According to the charts, this flagship cryptocurrency experienced a “strong rebound, a correction, lower highs, and broke the first low,” then broke through to new highs.
From this performance, it seems that the altcoin correction has ended, “if this continues, they should start rebounding soon.” Similarly, Michaël van de Poppe stated, “The correction is almost over, and the rise of altcoins and Bitcoin is imminent. Expect more performance in the future.”
Will Altseason follow the script of 2021?
Titan of Crypto asserted that altcoins will soon explode, implying that “the grand finale is just around the corner.” According to the analyst’s chart, altcoins are in a two-year cup and handle pattern, having broken above the pattern’s neckline at recent market highs.
Based on this pattern, the market cap of altcoins excluding ETH could rise by 200%, reaching $1.4 trillion, surpassing the $1.13 trillion high of 2021. The analyst also pointed out that the industry showed similar performance before the 2021 rally.
In 2020, altcoins exploded in November, then sharply declined 30% in early December, followed by a four-week rebound. They then surged 143% in January 2021, leading to three more months of green candles before the first major correction.
Similarly, in December this year, their prices also fell 26%, currently in the third week of an expected four-week recovery. For analysts, “early January could mark the start of a ‘rise-only’ season.”
Finally, Titan of Crypto added that in the past two cycles, the initial rally of altcoins lasted 140 to 175 days, suggesting that this rally could reach new highs around April or May. Based on past cycles, it might first rise in the second quarter of 2025 and peak in the fourth quarter.