Analytics firm Santiment predicts that altcoins are poised for a comeback after a month-long correction in the crypto market. The firm indicates that the recent marketwide pullback has led many altcoin traders to sell off their holdings, resulting in significant losses. Santiment’s model reveals that the majority of altcoins are currently in a historic opportunity zone when considering the market value to realized value (MVRV) of wallets’ collective returns over various time periods, such as one month, three months, and six months.

MVRV is an on-chain indicator used to determine whether a crypto asset is undervalued or overvalued. Given that the MVRV is currently at prime opportunity zones for most altcoins across different time frames, Santiment suggests that altcoins may be in a “historic position” to experience rallies. The firm believes that it could be a good time to buy altcoins due to the growing fear among traders triggered by the recent market cap drops.

Santiment also highlights that traders are shifting their focus away from volatile altcoins like Dogecoin (DOGE) and towards cryptocurrencies that have remained stable during the choppy market conditions. While the total number of non-empty Bitcoin wallets continues to increase despite price fluctuations, altcoin wallets for assets like Dogecoin have plateaued after significant surges earlier this year. The report mentions that Cardano is one of the few networks experiencing a decline in active wallets.

At the time of writing, DOGE is trading at $0.149, representing a decline of over 34% from its peak of $0.228 in 2024. On the other hand, Bitcoin is valued at $64,000, marking a 13% decrease from its high of $73,650 in the same year. Santiment’s analysis suggests that altcoins may present a lucrative opportunity for investors seeking potential gains in the crypto market.