These Crashed Altcoins Have the Best Chance to Recover: Sentiment

Most major crypto assets experienced a significant price drop over the past 24 hours. At press time, some had crashed as much as 15%.

Market intelligence platform Santiment revealed some hope amid the bearish trend. The platform mentioned seven altcoins that saw the worst hit in a tweet, adding that they could see “a quick rally” if retailers start selling their holdings.

Altcoins, especially those that have risen significantly during this 2-month bull rally, have plummeted today. If retail traders react in fear and start selling their bags, expect a quick rally in assets such as TRX, AVAX, DOT, ICP, POL, FIL and TIA. pic.twitter.com/tW8AzzGLjc

— Santiment (@santimentfeed) December 9, 2024

Altcoins face bearish trend

The seven altcoins on Santiment’s list include TRON (TRX), Avalanche (AVAX), Polkadot (DOT), Internet Computer (ICP), Polygon (POL), Filecoin (FIL), and Celestia (TIA).

These crypto assets have seen significant price gains in the past two months. For example, TRX recently rose from $0.23 to $0.43, surpassing its peak price of 2018. This rapid upward trend led the founder of the crypto project, Justin Sun, to call TRX the next XRP (another altcoin that saw a massive rise in a few days).

AVAX has also seen massive gains recently, moving from $28 to $54 over the past month. The DOT also went from $4.35 to $11.1 in the same time period. The other altcoins also saw significant price increases. The values ​​of these assets have now fallen significantly, causing fear and uncertainty among token holders.

Due to the latest price drop, Santiment hinted that retail traders might sell their holdings out of fear.

What could drive the rebound?

The market intelligence platform believes these assets could see an impressive recovery if retailers offload their altcoin holdings.

The firm had explained in a previous report that crypto assets often go in the opposite direction to traders’ expectations. A bearish view towards these assets can set them up for a bullish rally. In other words, a bearish trend can propel the altcoin family to rebound if such a trend occurs.

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