An updated analysis by Australian expert Miles Deutscher suggests that the altcoin market could be on the brink of breaking out of a six-month downward trend. The recent market rally, triggered by the U.S. Federal Reserve’s interest rate cut and Bitcoin surpassing the $62,000 resistance, bodes well for altcoins.
Indicators of the Market Rally
Deutscher’s charts indicate that altcoins are currently at a crucial breakout point, signaling a potential breakthrough above the upper boundary of the channel. This could potentially lead to a bullish market trend continuing towards the end of 2024.
Impacts of Potential Trend Changes
Deutscher believes that if the upward trend continues, Layer-1 and GameFi altcoins could experience significant movements. He also highlights the importance of AI-based altcoins, which are likely to remain relevant in the market. However, he acknowledges that the altcoin market is currently uncertain and could move in either direction.
Focus on Altcoins and Projects
Deutscher identifies several projects from Layer 1 ecosystems, such as SUI, Fantom, Solana, and Near, as potential leaders in the upcoming altcoin season due to their planned updates. In the AI domain, he continues to track altcoins like Tao, Fet, and Prime, while closely monitoring RWA projects like Ondo Finance. Additionally, with the growing interest in blockchain gaming, Deutscher has increased his investments in the GameFi sector by adding Super and Beam coins to his portfolio.
Deutscher concludes that further analysis of several weeks of data is necessary to gain certainty in the altcoin market. A genuine breakout could mark the end of the downtrend and the beginning of a new upward trend. These developments present new opportunities within the cryptocurrency markets.
For new participants, focusing on Layer 1 projects, GameFi, and AI-based tokens could be a strategic move to diversify their portfolios.
Please note that the information provided in this article is not investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.