Renowned technical analyst Michaël van de Poppe urges investors to hold on to altcoins despite the current sell-off.
Since May 2024, van de Poppe has been fully invested in altcoins. He admits that this strategy is risky given the volatility of the cryptocurrency market.
Hold altcoin positions despite selling
In a recent analysis, van de Poppe discussed the roller coaster experience of owning an altcoin portfolio. He emphasized the unpredictable nature of market recoveries, emphasizing that while many altcoins have plummeted, there is still potential for significant gains.
“Cryptocurrency sentiment can change in a day and become a bull market in just a few weeks. So the question is what the game plan is going to be,” he said.
Van de Poppe pointed out that even major altcoins are not performing well, while Daan Crypto agrees that most altcoins are down between 40% and 90%.
For example, Ethereum has seen a notable decline of over 10%, Chainlink has seen a decline of 26%, and some investments such as Wormhole have suffered significant losses, down over 40% over the past month.
Read more: 7 Hot Meme Coins and Altcoins That Will Be Trending in 2024
Despite these setbacks, analysts such as van de Poppe and Aylo remain confident in the strategy. They even increased his risk exposure by replacing old altcoins with new ones that they believe will perform better when the market rebounds.
“This is the best place to bid for altcoins after mid-2023. Patience is required as you will likely be in this area for a while. Clearly, this does not seem like a good place for panic selling,” Aylo said.
In previous bear markets, van de Poppe invested in Polygon, Phantom, and Ferosity, which suffered an initial downturn. But he eventually made huge profits from Ferosity, which soared 95 times its initial value.
He attributes his success to understanding market cycles and having the resilience to weather difficult times.
Van de Poppe sees Ethereum as a key indicator for the broader market going forward. He predicts that if Ethereum gains momentum, it will trigger a broader altcoin season. Therefore, van de Poppe advises his fellow investors to maintain a long-term perspective and resist the urge to sell during a recession.
“I think you should consider maintaining your current position and continuing to accumulate if possible. If you have the ability to continue accumulating positions, this is also the time to show that you have balls of steel,” he concluded.
Read more: What are the best altcoins to invest in June 2024?
The altcoin market is currently struggling, but van de Poppe’s analysis shows that patience and strategic holding can yield significant returns.
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