The May-June bear market was one of the very few that had a stronghold of this year’s entire cryptocurrency market. Historically, crypto-assets record bulky bear markets yearly; some are more significant than others in terms of duration and effect on prices. This year, the bear market had been looming, as analysts have observed.
There were many fundamental structures with risk factors that could very easily trigger a bear market; which happened and lasted for most of May and June and a little into July.
The bounce back from the market has been commendable, and altcoins are largely to thank for this. Some of the best performers in the last month are already primed to retest their ATH and breakout eventually.
Terra (LUNA) bulls are awake and ready to take off
Terra (LUNA) DeFi investors were panicking through May when LUNA, one of the leading altcoins from late last year till present, fell into the bear trap.
LUNA’s price value was significantly slashed, sending prices to a yearly low of $4.09, and its market cap shaved off a whopping $3 billion. LUNA traded between $5 and $8 till the mid part of July before the bulls teased a comeback at $10.
The recovery would get smoother as Luna adds $5 more to that price. While it is still far away from its yearly all-time high of $22.33, the DeFi token is well on its way to the top.
Chainlink (LINK) has a long way to go, but market players are still bullish in the long term
Chainlink (LINK) DeFi’s top dog Link shares a similar story with Luna. The same pattern of reaching a new yearly high and crashing down to rock bottom is a perfect summation of Link’s timeline. The expected closing price for the DeFi flagship asset this year was $100.
The predictions were unanimous before LINK dipped from $52 in May, to as low as $15. The unexpected bear market did suppress the bullish predictions, but since August, LINK has corrected weekly losses, gaining over 16% at press time as the price holds base at $24. While $100 may take longer than expected, we might not see Chainlink trade below $18 if bulls stay consistent.
Conclusion: Presently, the market’s expectations for altcoins have been decent following the bloodbath. Before altcoins season takes off this quarter, the market must maintain stability at current valuations.