Cryptocurrency markets are showing early signs that the worst may be over, following a prolonged decline that began with a sharp sell-off in the industry in October last year.
In a new report shared on social media, technical analyst Ali Martinez says the market is now starting to form what he calls a structural floor.
Preparing the next course for crypto leaders
Martinez’s view stems from the idea that seven months of extreme volatility may also create a rare opportunity. For those focused on the long-term picture, he says, the current turmoil can serve as a reset period before the next multi-year cycle.
Instead of treating the current sell-off as purely negative, Martinez said suggests This may be setting the conditions for a new bullish phase once the market stops bleeding.
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When looking at the “big picture” of the broader cryptocurrency market structure, Martinez points to a metric that he says helps determine the floor: the CVDD channel, which stands for Cumulative Value Days Destruction.
According to his analysis, Bitcoin’s “golden zone” is currently close to $49,330. He claims that historically, entries into this zone have tended to occur before bull market moves, and sets bullish targets for what could follow – potentially as high as $178,478 and, in a more inclusive scenario, $273,158.
Then the analyst turns to Ethereum (eth). Martinez says he is monitoring whether ETH moves within a parallel channel pattern, and if this interpretation holds, he believes the area between current levels and $1,070 could provide a high-conviction entry point.
From there, he highlights an ecosystem-wide bullish scenario with an overall target of around $8,670 as the next major target, and frames it as a move that will emerge as the broader cryptocurrency ecosystem matures.
Forecast for XRP, SOL and DOGE
For XRP, Martinez focuses on a specific support level as key to determining whether the cryptocurrency market can stabilize. He says that if XRP can hold support near $0.80, this could create a strong “buy the dip” setup, which could give traders an opening before a subsequent retest of XRP. Highest level ever Near $3.30 and beyond.
Solana (SOL) is next, and Martinez notes that SOL may need a broader “generational” reset to complete the bottoming process. He argues that the potential low zone is $74 to $50, describing this range as a complete reset of the speculative “foam.”
Martinez describes this type of clearance as a key stepping stone to the next upward move, meaning that the more aggressive the pullback, the more room there is for the next leg up.
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Finally, Martinez discusses Dogecoin (DOGE) using what he calls fractal signals. He says the structure of the memecoin chart suggests a Winding stage Which often appears before the next equivalent move.
In this context, Martinez points to an area where he believes larger, more informed buyers could begin to accumulate. His range for this accumulation is between $0.090 and $0.060, which he describes as an area where the accumulation could start to intensify before a potential upside rally.
Featured image from OpenArt, chart from TradingView.com
