As June comes to a close, historical patterns signaling the bottom of the altcoin market seem to be playing out once again.
According to analysis by the cryptocurrency analysis company Discovery, the market is stabilizing as planned, and investors' attention is now turning to potential 'summer rebounds' and specific altcoins that may lead the trend in July.
Does June signal another market bottom?
For the past five years, June has been a critical turning point for altcoins. Analysts believe this pattern is not coincidental but a seasonal trend driven by institutional traders who typically sell their holdings before summer, creating better entry opportunities for other investors.
Looking at the 'Total 3' cryptocurrency market chart (excluding Bitcoin and Ethereum) reveals that June has consistently been a bottom over the years. In 2020, 2021, and 2023, altcoins rebounded strongly after finding support in June.
Even during bear market periods, such as in 2022, June marked the beginning of consolidation rather than a continuous decline. These consistent patterns reinforce the belief that June provides a critical accumulation window for altcoins.
What do on-chain metrics mean?
Additionally, market indicators such as the MVRV Z score (which measures the difference between market value and actual value) are currently in the green zone. This suggests that most holders have not yet made a profit, thereby reducing the likelihood of a large-scale sell-off.
Related: 6 altcoins shine with strong relative strength in a bear market
Historically, when this score exceeds 7, bull markets peak. Currently, this indicator is far below that level, indicating significant growth potential.
Tokens related to Trump have sparked speculative interest
This summer, political factors may also influence the performance of altcoins. Some tokens have increasingly connected to statements made by Donald Trump and his associates.
As Trump continues to promote a friendly stance towards cryptocurrencies, some investors are beginning to bet on DeFi tokens that may benefit from favorable policy shifts. Notably, Chainlink, Ondo, and Aave have become key investment choices.
Related: The altcoin quarterly index has fallen to its lowest point in two years: What history tells us
The co-founder of Chainlink attended Trump's cryptocurrency summit, hinting at a possible alliance with Trump. Reports indicate that Ondo donated to Trump's inauguration, with part of its equity held by a cryptocurrency company linked to Trump.
Meanwhile, Aave is the foundation of the company’s infrastructure. The prices of these tokens have fallen between 50% and 75% from their previous peaks, suggesting potential upside in the anticipated summer rebound.
