- Crypto enthusiasts expect altcoins to rally long after the market enters into consolidation.
- Altcoins surge after market rally exhaustion has become a historical pattern.
- Sustained altcoin rallies are a characteristic of lower market cap and high volatility of altcoins.
There is a buzz among the altcoin community suggesting an imminent pump in the coming days. Some crypto users have based their predictions on the historical behavior of the altcoin market when volatility spikes.
One analyst that goes by the name Crypto Bitlord, advised his followers to load up on altcoin because he is almost guaranteed a parabolic price movement in the coming days. Bitlord’s comment seems to have left the community excited with users seen mentioning their preferred crypto in response to the tweet.
Another Twitter user by the handle @K_NON_9 corroborated Bitlord’s prediction. In an independent tweet, @K_NON_9 explained the idea behind the popular advice to go bullish on altcoins around this time. According to @K_NON_9, in an uptrend, altcoins display what she describes as “pump after the PUMP”. It means that during uptrends, altcoins tend to sustain the move for much longer. They often seem to retain the market momentum after the bigger cryptocurrencies are done.
It is important to note that she implied a similar circumstance if the case was reversed. She noted that when crypto prices crash, altcoins tend to fall harder, and their move lasts longer while the rest of the market consolidates.
The tendency for altcoins to move faster, or to sustain trends longer than the main market can be related to the altcoin market size. Compared to the larger market, altcoins have the smallest market capitalization. As a result, relatively smaller trades have the capacity of causing large movements in the specific altcoin marketplace.
From the above analysis, whale status for specific altcoins is easier to achieve than more established cryptocurrencies. Hence, whether by deliberate acts or by happenstance, over the years, the market has come to respect this cycle.
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