The cryptocurrency market has witnessed a significant downturn over the past six weeks, with the total market cap falling 12.3% from $3.73 trillion to $3.42 trillion. The bullish sentiment that fueled Bitcoin’s [BTC] meteoric rise toward and past the $100k mark in November and December has largely dissipated, leaving the market in a range-bound state.
As Bitcoin formed a resistance zone around the $100k level, altcoins took a severe hit, shedding substantial value. One altcoin feeling the pain is Pepe [PEPE], which has dropped 57.8% from its all-time high in mid-December. Despite this sharp decline, there are signs that the memecoin may have formed a bottom, suggesting potential for a rebound in the near future.
A key observation comes from Max Schwartzman, the founder of BecauseBitcoin, who pointed out a potential trend in the PEPE/DOGE trading pair. Schwartzman noted that in February 2024, the pair had retested a critical support level before making an impressive run, with PEPE outperforming Dogecoin [DOGE] significantly in February and March. According to Schwartzman, the same pattern could be unfolding once again, making Pepe a prime candidate for extraordinary gains.
I think that the PEPE/DOGE pair is bottomed here.
— Max (@MaxBecauseBTC) January 31, 2025
This is adding even more confluence to the idea that $PEPE could run back the February/March price action from 2024 when it 10x'd in 40 days. pic.twitter.com/X1D7SvGCDm
However, while the PEPE/DOGE pair might be showing signs of strength, the broader altcoin market remains in uncertain territory. The highly anticipated “altseason” has not yet arrived, with current altcoin market readings sitting at 53. In early 2024, Bitcoin’s spot ETF approval led to a massive price surge, pulling altcoins higher as well. This historical pattern suggests a potential for a mini altseason if Bitcoin dominance faces rejection at a critical resistance level, paving the way for altcoin rallies.
Also Read: Crypto Market Plunges: $2.21 Billion Liquidated, XRP, DOGE, ADA Hit Hardest
While fear and skepticism dominate the market, especially with concerns over whether the cycle is over, it is often during these fearful conditions that strategic buying can yield significant returns. However, investors must approach with caution, as the market’s future trajectory remains uncertain.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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