According to @CryptoMichNL, altcoin market capitalization has dropped back to the October 10 wick area and now sits on a crucial support after negative social sentiment. He adds that recent price action shows pretty good bounces from this level, indicating the likelihood of green candles ahead if support holds. The altcoin market is showing promising signs of stabilization, with Michaël van de Poppe noting robust conditions despite negative sentiment on social platforms. Altcoins have declined to the wick levels observed on October 10, which now serve as a key support zone and have shown notable bounces suggesting potential upward momentum.
For traders, this presents an opportunity to monitor key altcoin trading pairs like ETHUSDT and BTC altcoin ratios, where support levels could trigger buying interest and lead to short-term rallies. From a trading perspective, the current bounces are indicative of accumulating bullish momentum. Key metrics to track include on-chain data, such as transaction volumes and wallet activity, which could validate the strength of the support. If green candles materialize as predicted, altcoin prices might target short-term gains of 5-10% from current levels, based on historical patterns after similar tests.
Investors should consider diversified portfolios, focusing on high-volume tokens like Ethereum and Binance Coin. Moreover, correlating this with stock market trends, such as the Nasdaq, reveals potential cross-market opportunities; AI sector developments could boost AI-related altcoins, improving overall crypto sentiment. Looking ahead, the altcoin sector’s ability to rest on this support without further breakdown is pivotal, and the technical setup favors a reversal despite poor sentiment. Traders are advised to set stop-loss orders just below the October 10th wick to manage risks, while watching resistance levels from mid-November highs.
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