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Altcoins show early reversal signs, with price action mirroring 2020 before major crypto market rally.
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ARB drops 85% then shows bullish divergence and breakout above 21-day moving average recently
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Van de pop expect potential 150% to 400% gains if breakout phase follows current recovery pattern soon.
As the crypto market shows a small recovery, talk of an altcoin rally is returning. As the early signs suggest, altcoins may be reversing their trend. Well-known crypto analyst Michael van de Poppe says current price action looks similar to early 2020, just before a major market rally began.
Repeating Historical Pattern Hint Bullish Rally
In a recent update, crypto analyst Michael van de Poppe highlighted Arbitrum (ARB) as a sign that the market may be turning bullish. He shared an ARB/USDT chart showing two key signals, a strong bullish divergence and a breakout above the 21-day moving average.
The chart shows that ARB once traded near $0.70 in late 2024 but then slowly dropped to around $0.10 by early 2026, marking a sharp 85% fall. After this long decline, the price is now starting to move up again.
For the first time since mid-2025, ARB has moved above the 21-day moving average. At the same time, the RSI is forming higher lows, which is a common sign that the trend could reverse.
The chart also shows volume slowly increasing, showing that interest is returning. According to the analyst, this is not just happening in ARB. Other projects in the Ethereum ecosystem, including Layer 1s and related protocols, are also starting to wake up.
Market Still in the Base-Building Phase
Despite these early bullish signals, the market is still in what analysts call a “base-building phase.” After the heavy drop in late 2025, prices have spent the last few months stabilizing.
Michael van de Poppe explains that this phase usually lasts around two to four months, and the market is now approaching the final stage of that process.
Bitcoin is also showing a similar pattern, having spent about 2.5 months building its base. This alignment between Bitcoin and altcoins adds more weight to the idea that a broader market move could be coming.
What Could Happen Next?
If this pattern continues, the analyst believes the next breakout phase could last another two to four months. During this time, prices could see strong upward moves, with gains potentially ranging between 150% to 400% from recent lows.
For now, the market is not fully bullish yet, but the structure is clearly improving.
