Crypto Market Set for December Dip Before Explosive Rally, Analysts Warn

Crypto analysts are forecasting a possible market pullback in December before the next upward movement takes hold.

A recent evaluation of the top 100 digital assets from November highlighted an overheated funding rate, suggesting the market may be due for a brief correction.

Stellar (XLM) outperformed the competition with a remarkable 478% gain over the last month. Virtual Protocol (VIRTUAL) followed with a 336% increase, while XRP and Algorand (ALGO) tied for third place with gains of 268% each.

The November rally, largely driven by the anticipation surrounding Donald Trump’s U.S. presidential victory, propelled Bitcoin to new heights, with the cryptocurrency surging 48% since November 5 and nearing the $100,000 mark—hitting an all-time high of $99,800. This marked a significant leap past the previous pre-halving high of $73,000, sparking a broader market rally.

Despite the bullish trend, the surge has introduced a range of complex factors, influenced by both macroeconomic and sociopolitical elements. Bitcoin’s proximity to the $100,000 threshold has traders divided between taking profits or betting on continued growth.

Technical indicators suggest that the market is currently overbought, signaling a potential pullback. Long-term investors may look to take profits, while the political landscape in the U.S. adds a layer of uncertainty. Trump’s pro-crypto stance and his recent appointments have fueled optimism about the sector’s future. However, many analysts believe the market will see a brief consolidation before gearing up for the next rally phase in the coming months.