Altcoin Q1 Hype Cycle Around The Corner?

Features analysis on Altcoin Market Cap and Altcoin Hype Cycles as well as 6 Altcoins: DOT UNI CHZ VET THETA MATIC

Welcome back to the Rekt Capital Newsletter.

Let's dive into today's Altcoin Market Update.

In today’s edition of the Rekt Capital Newsletter, the following cryptocurrencies will be analysed & discussed:

  • Polkadot (DOT)
  • UniSwap (UNI)
  • Chiliz (CHZ)
  • VeChain (VET)
  • Theta Token (THETA)
  • Polygon (MATIC)

Before we dive in to today's Altcoins, let's first talk about how the Altcoin market may slowly be coming back to life after a period of retracement in recent weeks.

Altcoin Market Cap

Last week, I posted a tweet on X about how the Altcoin Market Cap needed to retest its market structure base as new support to position itself for a potential breakout and upside in the future:

Altcoin Market Cap was able to hold the base as support, despite downside wicking below it briefly:

In fact, the Altcoin Market Cap has been able to reverse to the upside and is now challenging the top of its pattern for a breakout.

Generally, this looks like a re-accumulation structure and it's coming at an interesting time when we consider Altcoin Hype Cycles.

Altcoin Hype Cycles

Historically, Altcoins tend to bottom after corrective periods mid-way through a particular quarter.

Sometimes this bottoming occurs earlier, sometimes a little later, but generally this appears to be the case, on average.

They bottom at a time in the market where maximum pessimism and extreme fear dominates when it comes to Altcoin valuations.

As a result this happens to be a period of when the hype towards Altcoins is the lowest.

It's after this moment in the Hype Cycle where Altcoins begin to increase in their valuations, all the way until the end of the Quarter where they reach their moment of highest hype, peak FOMO, peak greed before retracing once again.

Fundamentally, it's at the end of the Quarters where Altcoin projects tend to release mainnets, make crucial updates and announcements.

In this respect, both TA and FA are two sides of the same coin.

But with Altcoin Market Cap slowly gearing up for a new uptrend, Altcoins trying to solidify themselves after their corrective periods, and the timing being almost perfect for a new Quarter 1 Hype Cycle...

These are all signs pointing to a new wave in Altcoin rallies.

So let's cover a few of the Altcoins we'd discussed in recent weeks and how things have progressed since those updates, starting with Polkadot.

Polkadot - DOT/USDT

Last week, we spoke about how DOT was gearing up for a retest attempt of the green demand area:

One week later, the retest has proven to be successful:

DOT has rebounded +12% to the upside and looks set to Monthly Close above the top of the green support area.

A Monthly Close above the top of the green area would enable DOT to continue to follow the blue path so as to revisit the black highs above.

UniSwap - UNI/USDT

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