Michaël van de Poppe, a prominent technical analyst, urges investors to hold onto their altcoins despite the current sell-off.
Since May 2024, van de Poppe has been fully invested in altcoins. He acknowledges that this strategy is risky, given the cryptocurrency market’s volatility.
HODL Your Altcoin Positions Despite Sell-Off
In his recent analysis, van de Poppe discussed the roller coaster experience of holding an altcoin portfolio. He highlighted that while many altcoins have plummeted, there remains potential for significant gains, emphasizing the unpredictable market recoveries.
“Crypto sentiment can switch in a day, and it can be a bull market in just a few weeks. So the question is what’s the game plan going to be?,” he stated.
Van de Poppe pointed out that even major altcoins are performing poorly, while Daan Crypto agreed that most altcoins are down 40% to 90%.
For instance, Ethereum has seen a notable decrease of over 10%, Chainlink shows a downturn of 26%, and some investments, like Wormhole, have suffered considerable losses, down more than 40% over the past month.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
Despite these setbacks, analysts like van de Poppe and Aylo remain confident about this strategy. They have even increased his risk exposure by swapping older altcoins for newer ones that he believes will perform better when the market rebounds.
“This is the best place to bid altcoins since mid-2023. Patience is required as we are likely to be in this zone for a while. Certainly, it doesn’t seem like a good place to panic sell,” Aylo said.
During a previous bear market, van de Poppe invested in Polygon, Phantom, and Ferosity, experiencing an initial downturn. However, he eventually saw massive returns, especially from Ferosity, which surged 95 times its initial value.
He attributes his success to understanding market cycles and having the resilience to endure tough times.
Looking ahead, van de Poppe sees Ethereum as a key indicator for the broader market. He predicts that once Ethereum gains momentum, it will trigger a broader altcoin season. Therefore, van de Poppe advises fellow investors to maintain a long-term perspective and resist the urge to sell during downturns.
“I think you should consider holding your position and, if possible, continue accumulating. If you have the ability to continue accumulating your position, then this is also the period in time where you need to show that you’ve got some balls of steel,” he concluded.
Read more: Which Are the Best Altcoins To Invest in June 2024?
While the current altcoin market presents challenges, van de Poppe’s analysis suggests that patience and strategic holding can lead to substantial returns.
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