- Santiment said that a price rebound is possible for altcoins in the near future.
- TRX, AVAX, DOT, ICP, POL, FIL, and TIA crashed massively in the past day.
- RSI levels for BTC and altcoins are back to healthy levels.
Altcoins Tron (TRX), Avalanche (AVAX), Polkadot (DOT), Internet Computer (ICP), Polygon (POL), Filecoin (FIL), and Celestia (TIA) to soar once the current market correction is over, according to blockchain analysis platform Santiment. This comes after a massive crypto sell-off as earlier reported.
Bitcoin (BTC) failed to reach higher highs and dropped to the $97,000 price level after hitting the $100,000 milestone in the past 24 hours. Meanwhile, altcoins lost the gains made in the past few days, suggesting that short-term holders are taking profits from the recent run.
Santiment said in an X post (formerly Twitter) that during this 2-month rally, some altcoins outperformed the crypto market and rose significantly. These altcoins have crashed hard in the past 24 hours, with TRX down 17.68%, AVAX falling 13.85%, DOT losing 16.47%, ICP down 14.89%, POL falling 15.96%, FIL crashing 17.97%, and TIA nosediving a massive 18.35%.
Read also: Altcoin Market Cap Hits $425B: Will XRP and ADA Lead Next Rally?
Santiment Predicts Altcoin Rebound
While altcoins plunged at the sharpest rates since September, Santiment expects these leading altcoins to become bullish soon. The platform suggests that if retail traders react with fear and begin selling off their holdings, a sharp rebound can be expected as whales take advantage of the dip.
Market Correction Explained
The current market correction was expected because the Relative Strength Index (RSI) levels for all the top cryptocurrencies, including meme coins and RWA tokens, along with Bitcoin, were extremely overbought. Such market corrections are necessary for healthy market movement and growth.
The daily chart provided by TradingView above shows that from November to December, the RSI for Bitcoin was in the overbought region. After the recent sell-off, the cryptocurrency’s RSI levels are back in the bullish zone, at 57.05. While overall, the market remains bullish, this bearish correction suggests higher prices in the future, if BTC stays above $100,000.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
