AKT and ABT predicted to surge as analyst anticipates the onset of altcoin season
The cryptocurrency market is displaying signs of greed as it prepares for the upcoming altcoin season, leading to significant surges in the prices of assets like Akash Network (AKT) and Arcblock (ABT).
As the altcoin season approaches, trader sentiment has shifted from fear to greed. Market intelligence platform Santiment has noted that this shift is often an indication of a local top, or the peak of the market before a correction.
Santiment’s post also suggests that traders’ sentiment towards more speculative assets is a reliable indicator of market trends. A sudden increase in calls for an altcoin season, when altcoins outperform Bitcoin (BTC), can be a useful metric to track as the market aims to recover from last week’s decline.
Interestingly, data from Santiment reveals a repetition of the pattern observed in July. Notably, there was a similar spike in discussions about the altcoin season in July, signaling a market top. This trend is currently unfolding, resulting in the recent drop in prices across the market.
However, the market has since experienced a recovery, with several altcoins, including AKT and ABT, leading in 24-hour gains. In particular, Akash Network has seen a 21.4% rally in the past 24 hours and a 36.6% increase over the last seven days.
The recent price surge followed a sudden drop to $1.5127 on December 11. Despite the slump, AKT managed to maintain its position above the psychological support level of $1.5. The token took advantage of the subsequent market recovery to make a comeback.
This comeback led to a sustained surge to the resistance point at $1.8194 on December 12. While this resistance triggered another decline, the bulls prevented a significant drop. AKT has now reclaimed the $2 price territory and is currently trading at $2.28.
In contrast, ABT is experiencing a more substantial price increase. Unlike AKT, Arcblock continued to consolidate from December 11 to 12. The cryptocurrency’s recent uptrend started as the broader market gained momentum.
Within 24 hours, ABT rallied 101% from $0.1544 to $0.3104. The last time the token reached the $0.3104 price level was in July 2019. Despite facing opposition at the five-year high, ABT has maintained its upward trend. It is currently trading at $0.2479, representing a 57% increase in the last 24 hours.
While an altcoin season may bring substantial gains for some investors, it also carries increased volatility and risk.
