- Altcoin market cap returned to $920 billion, breaking out of a 9-month downtrend.
- Analysts predicted continued growth, with SEI and other altcoins showing promising signs of further upside.
The altcoin market has shown remarkable resilience over the past few weeks, bouncing back from a significant decline earlier this month.
The global altcoin market capitalization, which had fallen below $800 billion, has since recovered, rising to $920 billion as of press time.
This recovery has sparked optimism among market participants, with many analysts sharing their bullish outlook for the future of altcoins.
Altcoins to Mirror 2017 Rally?
Noted cryptanalyst Mustache, known for his insights on X (formerly Twitter), highlighted the similarities between current market conditions and those seen in 2016.
Mustache pointed to the Relative Strength Index (RSI) as a key indicator, noting that falling RSI lines typically break upwards eventually.
Source: Mustache/X
He expressed confidence that altcoins could repeat the massive rallies seen in 2016 and 2017, albeit over a longer time frame.
In a subsequent post, Mustache underlined that altcoins had recently broken out of a nine-month descending wedge, a bullish pattern that hinted at further upside potential.
Mustache was not alone in his positive outlook. Another well-known analyst, Michael Van De Poppe, also shared his thoughts on the potential of the altcoin market.
Van De Poppe noted that many altcoins experienced their first upward push in the past week and predicted a short period of consolidation before the uptrend resumes.
He believed that the second half of 2024 will be particularly favorable for altcoins as they continued to break through crucial resistance levels.
SEI as a case study
Van De Poppe used SEI, a lesser-known altcoin, as a case study to illustrate his point.
Despite a recent 5.1% drop in SEI’s price, the asset has managed to hold above the critical support levels of $0.31 to $0.32 that Van De Poppe identified as crucial to its continued upward movement.
He suggested that if SEI maintains this support, it could target a price of $0.46 in the near future.
SEI’s market activity further supported this bullish outlook.
According to data from Coinglass, while SEI’s Open Interest – the total number of outstanding derivatives contracts – has fallen 4.14% over the past day to $96.55 million, its Open Interest volume is up 44% to $313.13 million.
Source: Coinglass
This increase in Open Interest volume suggested that, despite the short-term decline, there was significant interest in SEI’s future price movements.
This indicated a build-up of positions that could lead to a price increase if the bullish momentum continues.
Additionally data from Santiment revealed a notable increase in SEI development activity, with the metric rising from a low of 1.8 earlier this month to above 6 as of press time.
Source: Sentiment
Read Sei’s [SEI] Price prediction 2024 – 2025
Increased development activity often reflected ongoing improvements and updates to a project, which can increase investor confidence and contribute to long-term price appreciation.
In SEI’s case, this increase in development indicated that the project was actively moving forward, which could have a positive impact on its market performance going forward.