Prominent crypto analyst Michael Van de Poppe reveals that now is a good moment to invest in altcoins after the crypto market had a strong bullish run in December. This recent spike reverses a long period of losses and consolidation that spanned between 2022 and the first eleven months of this year.
Changing Market Dynamics
Meanwhile, the price of the native tokens of the Injective (INJ) and Solana (SOL) protocols have been more dynamic recently. In his explanation for this heightened volatility, van de Poppe said that airdrops are one of the factors causing this volatility.
His analysis aligns with on-chain data. Cardano (ADA) recently surpassed the $0.61 price level, while Solana trades at almost $100, demonstrating that most digital currencies are preparing for a bull run. He added that investment in the following tokens (Dent (DENT), Ethereum (ETH), Fetch.ai (FET), and Shiba Inu (SHIB)) is a smart move.
Interestingly, the top ten exchange wallets for these four tokens are transferring their funds off of the exchanges. A recent Santiment post suggests that these whales’ action typically indicates an imminent price rally.
Why Invest In Altcoins Now?
Analysts forecast that a price rally for ETH will set off a chain reaction that would cause the prices of other assets to be bullish. They predict that the majority of this change will take place in the first three months of 2024.
Van de Poppe added that altcoins’ prices are usually at their lowest about three to eight months before the halving event. Therefore, this period marks the best time to invest in them.
In addition, the possible approval of the Spot BTC ETF as the event approaches will further boost the prices of these altcoins. The crypto analyst explained that the volatility of BTC will reduce during this period, causing capital to move to other cryptocurrencies.
As the leading altcoin, Ethereum is well-positioned to capture a substantial chunk of this investment flow. Furthermore, another Crypto expert, Jelle, opined that historical data shows that the first quarter is good for cryptocurrency investing.
He explained that investment funds often rebalance their portfolios toward the end of the year for tax and risk reasons, which causes rebalancing in the markets. However, new fund allocations injected into the market reverse these trends when the new year begins.
Potential Breach Of All-Time High
Meanwhile, Kaleo, a popular cryptocurrency expert, is bullish on RUNE, the governance token of the THORchain protocol. The token’s value has increased by more than 100% in the past two months.
Explaining his thoughts with his over 600K followers on X, Kaleo stated that RUNE could reach a new price high if it overcomes the descending trendline on the daily chart, which is currently its major resistance level. He revealed that he bought this altcoin during a price dip and started a RUNE stake.
RUNE’s 231% Spike
At the time of writing, RUNE trades at $5.42 per Coingecko data, representing a 231% increase from its $1.63 price level on October 21. Thus, it is the 52nd ranked cryptocurrencies by market cap. During the 2021 bullish run, RUNE reached a peak price of $21.28.
According to Kaleo’s analysis, RUNE began its impressive ascent in early November and has sustained this rally till now.
