Market Sees Recovery—Analysts See More Upside Coming

• The altcoin market cap rebounded 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 demonstrated notable resilience over the past few weeks, bouncing back from a significant dip earlier this month. 

The global altcoin market cap, which had dropped below $800 billion, has since recovered, climbing to $920 billion as of press time.

This rebound has sparked optimism among market participants, with many analysts sharing their bullish outlook on the future of altcoins.

Altcoins to mirror 2017 rally?

Renowned crypto analyst Moustache, known for his insights on X (formerly Twitter), highlighted the similarities between the current market conditions and those seen in 2016.

Moustache pointed to the Relative Strength Index (RSI) as a key indicator, noting that falling RSI lines typically break upwards eventually. 

Source: Moustache/X

He expressed confidence that altcoins could repeat the massive rallies seen in 2016 and 2017, albeit over a longer timeframe.

In a subsequent post, Moustache emphasized that altcoins had recently broken out of a nine-month falling wedge, a bullish pattern that suggested further upside potential.

Moustache was not alone in his positive outlook. Another well-known analyst, Michael Van De Poppe, also shared his thoughts on the altcoin market’s potential. 

Van De Poppe noted that many altcoins experienced their first upward push in the past week, and predicted a brief 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% decline in SEI’s price, the asset has managed to hold above the critical support levels of $0.31 to $0.32, which Van De Poppe identified as essential for 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 derivative contracts—has decreased by 4.14% over the past day to $96.55 million, its Open Interest volume has surged by 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 rally if bullish momentum continues.

Additionally, data from Santiment revealed a notable increase in SEI’s development activity, with the metric rising from a low of 1.8 earlier this month to over 6 as of press time. 

Source: Santiment

Read Sei’s [SEI] Price Prediction 2024 – 2025

Increased development activity often reflected ongoing improvements and updates to a project, which can enhance investor confidence and contribute to long-term price appreciation.

In SEI’s case, this uptick in development suggested that the project was actively progressing, which could positively impact its market performance moving forward.