Santiment Forecasts Recovery for These Altcoins After Market Correction

• Altcoins like TRX, AVAX, and DOT plunged up to 18.35% amid a market correction, following Bitcoin’s drop to $97,000.
• Analysts expect altcoins to rebound as whale buying may offset retail panic selling, driving a potential bullish phase.
• Bitcoin’s RSI has returned to 57.05, signaling a stable bullish zone, with analysts eyeing prices above $100,000 for market optimism.

The cryptocurrency market has witnessed significant volatility, with leading altcoins experiencing steep declines following a massive sell-off. Blockchain analytics platform Santiment has reported that coins like Tron (TRX), Avalanche (AVAX), Polkadot (DOT), Internet Computer (ICP), Polygon (POL), Filecoin (FIL), and Celestia (TIA) saw notable losses in the last 24 hours. Despite this downturn, analysts expect a sharp recovery in these altcoins as the market regains its footing.

📉 Altcoins, particularly those that have surged significantly during this 2-month bull rally, have plummeted today. If retail traders react with fear and begin selling off their bags, expect a swift rebound to assets like TRX, AVAX, DOT, ICP, POL, FIL, and TIA. pic.twitter.com/tW8AzzGLjc

— Santiment (@santimentfeed) December 9, 2024

Sharp Declines for Altcoins Amid Market Correction

Notably, Altcoins have faced their most significant downturn since September, with several tokens suffering double-digit percentage losses. TRX dropped 17.68%, while AVAX and DOT fell 13.85% and 16.47%, respectively. Other coins, including ICP, POL, FIL, and TIA, nosedived by as much as 18.35%. This sell-off follows Bitcoin’s recent climb to $100,000, though it has since retraced to the $97,000 level. Short-term holders appear to be taking profits, driving the altcoin downturn.

Intriguingly, Santiment noted that the sell-off was expected due to overbought conditions in the market. The Relative Strength Index (RSI) for leading cryptocurrencies, including Bitcoin, reached unsustainable levels during the recent rally. This correction, though sharp, aligns with historical patterns, allowing for healthier market dynamics moving forward.

Retail Behavior and Whale Activity Drive Speculation

Additionally, Santiment has highlighted retail traders’ reactions as a critical factor in determining the next phase of market movement. Fear-driven selling by smaller traders often creates buying opportunities for large-scale investors, or “whales.” Analysts believe whales are likely to capitalize on this dip, potentially triggering a strong rebound in leading altcoins. Such trends have been observed during previous market corrections, setting the stage for a bullish phase in the near future.

Moreover, the current RSI levels, which now stand in the bullish zone for Bitcoin, signal a potential price resurgence. At 57.05, the RSI suggests that Bitcoin may stabilize above $100,000, encouraging confidence across the broader crypto market.

Future Outlook as Market Conditions Normalize

More so, as market conditions stabilize, analysts are optimistic about the recovery potential of altcoins. The recent rally demonstrated the strength of several altcoins, with some outperforming the broader market before the correction. The current dip may serve as a consolidation phase, positioning these assets for significant growth as sentiment improves.

Besides, market observers also stress the importance of this correction for long-term health. While recent losses may unsettle some investors, corrections are essential for sustainable growth and reduce the risk of overbought conditions leading to larger collapses.

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