Rekt Capital is known for its ability to spot recurring patterns in how altcoins move each market cycle.. With over 450k followers on platforms like X, he shares his findings on altcoins and the typical waves they experience.
In its recent post, Rekt Capital said that altcoins tend to hit bottom roughly every three months. He explains the view that the last trough occurred in early February. Analyzing data from past cycles, Rekt Capital thinks that prices may reach their bottom at the end of May and the beginning of June. However, he sees this as just the last jolt before the next leg of the bull trend begins.
Understanding the tides in altcoins and Bitcoin
Looking at previous bull runs, Rekt Capital expects Bitcoin to consolidate between $60,000-$70,000 over the next six-eight weeks as it attempts to find a new support base post-halving. This bodes well for altcoins to stabilize along with BTC. This means that it is preparing the ground for the next rise starting from the three-month cycle in July.
Summer season looks set to offer attractive entry points for altcoins
If history repeats itself, Rekt Capital advises that the summer will offer attractive entry points for altcoins. Rekt Capital also warned investors against getting caught up in short-term fluctuations. Instead, he pointed out that altcoins should focus on longer time frames and key support levels.
Whales carry billions of dollars worth of altcoins
XRP had rallied over 5% to regain the $0.50 price level. However, accompanying the altcoin’s recovery were XRP transfers totaling 452,869,591 XRP, or $232 million, to Bitvavo, Bithumb, and Bitstamp.
The earliest move saw Bitstamp receive 22 million XRP ($10.8 million) from an anonymous source. Even more striking was a massive transfer of 390 million XRP to Bithumb, worth $201 million. Within an hour, Bitvavo received two payments of 40 million XRP, totaling over $20 million.
Stock markets received record altcoin inflows
The timing and size of altcoin inflows to exchanges led one to predict that we might see XRP selling pressure. One user in particular pointed out that with assets of this size, unknown wallet holders may want to liquidate their tokens.
The original sources of these altcoin transfers provide little clue as to the entities behind the movements. The transfer transaction on Bithumb specifically originated from the exchange. He also hinted at an internal transfer. Additionally, wallets for Bitstamp and Bitvavo remain anonymous.
Large XRP transfers underscore the uncertainty still surrounding altcoin markets. As a bellwether altcoin, XRP price action can provide signals regarding broader market direction. For now, exchanges are prepared for potential sell-side pressure from these massive altcoin inflows of unknown origin.
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