News 
February 19, 2025 
4 min. 
The cryptocurrency market is going through a rough patch, with altcoin experiencing sharp declines over the past week. Major digital assets such as Solana (SOL), Virtuals Protocol (VIRTUAL), AI16Z, and Bittensor (TAO) have all suffered significant losses, leading to growing concerns among investors. However, despite the downturn, analysts remain optimistic, predicting that a market recovery could be on the horizon.
Altcoin Market Nearing a Turning Point?
According to crypto analyst Jason Pizzino, the current negative sentiment and capitulation in the altcoin sector might actually signal that a major rebound is coming. In a post on X (formerly Twitter), Pizzino noted that Bitcoin and altcoins are facing intense selling pressure, but history suggests that such downturns often precede a strong market recovery.
He also pointed out that while the crypto market is struggling, stock markets in Europe and the U.S. are performing well, and the U.S. dollar is weakening—a combination that could fuel a resurgence in digital assets.
Adding to the bullish sentiment, another analyst known as Chiefly suggested that this could be the final dip before many altcoins hit new all-time highs. He even hinted that low-cap altcoins could generate massive gains, stating, “Just a few right low-caps will turn your $150 into $25,000.”
Market Indicators Suggest a Potential Bounce
Although there have been recent setbacks, there is a hint of potential recovery in the market. As per CoinMarketCap data, Fartcoin (FARTCOIN), which recorded growth of 464% in 2024, is now down by 45%. VIRTUAL, a coin which shot up to 2000% is also down, significantly by 20% in the last week.
The altcoin sector has an RSI of 38.82 which means that the market is nearing oversold areas. Still, there is some distance to go as it has not hit below 30 which would indicate a significant buy signal. The relative strength index shows some altcoins have the potential to go up all the way to 66.04.
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Another important indicator, the Moving Average Convergence Divergence (MACD) histogram is still negative. The blue MACD line continues to stay below the orange signal line. We witnessed a bearish divergence last week which caused panic selling and so right now, the Histogram is countering this. For now, analysts expect lower prices, but should the MACD line go above the signal line it will be a different story altogether.
On the other hand, traders are hoping to observe what happens when the resistance level of $884.46 billion is touched. If the 20-week EMA level is broken, then there is a good possibility of a shift in the bearish momentum and it could escalate the altcoins back into the bullish zone.
