As cryptocurrency markets show signs of recovery, prominent trader Michaël van de Poppe has shared an optimistic outlook for altcoins, predicting a significant rally back to pre-October 10 levels during this quarter. According to his analysis posted on January 10, 2026, the initial indicators are already emerging, particularly with tokens like OP demonstrating bullish technical patterns. This sentiment aligns with broader market improvements, where buying pressure appears to be overtaking previous selling forces, setting the stage for potential upward momentum in various altcoin trading pairs.

Breaking Down the OP Breakout and Technical Indicators

In his update, van de Poppe highlights the first breakout above the 21-Day Moving Average (MA) for OP, a key technical milestone that often signals the start of a trend reversal in cryptocurrency trading. This breakout, observed on January 10, 2026, is accompanied by the establishment of higher lows on lower timeframes, which indicates increasing buying interest and a potential exhaustion of selling pressure. For traders focusing on altcoin strategies, this pattern suggests a shift from bearish to bullish sentiment, with OP positioned as a leading example. Without real-time price data, we can contextualize this based on historical behaviors where such breakouts have led to rallies exceeding 50% in similar market conditions, encouraging positions in OP/USDT or OP/BTC pairs on major exchanges.

Furthermore, the analysis points to an 'insane amount of liquidity' poised for liquidation should OP achieve a new high. Van de Poppe cites POL as a current example of this phenomenon, where liquidations can amplify price movements, creating volatile yet profitable trading opportunities. Traders should monitor support levels around recent lows and resistance at previous highs, as breaking these could trigger cascading buy orders. In terms of on-chain metrics, increased trading volumes and wallet activity around these tokens could validate this rally thesis, with institutional flows potentially driving the momentum as markets stabilize.

Potential Rally Targets and Broader Altcoin Implications

Looking ahead, van de Poppe forecasts a run towards the 'fair price' of OP, estimated to be more than double its current levels as of his January 10, 2026 post. This implies substantial upside potential, with altcoins broadly expected to reclaim pre-10/10 valuations. For context, pre-October 10 levels refer to price points before a presumed market dip, and rallying back could involve gains across multiple sectors like DeFi and layer-2 solutions. Trading strategies might include longing OP with stop-losses below the 21-Day MA to manage risks, while watching for correlations with major cryptocurrencies like BTC and ETH, which often influence altcoin performance.

The overall message that 'markets are getting better' resonates with current sentiment shifts, where reduced selling pressure opens doors for accumulation phases. Without specific timestamps on price movements, traders are advised to use tools like RSI and MACD indicators to confirm entries. If this rally materializes, it could lead to increased trading volumes across altcoin pairs, with opportunities in leveraged positions or spot trading. Institutional interest, as seen in recent ETF inflows for BTC, might spill over to altcoins, enhancing liquidity and price discovery. For those exploring cross-market plays, stock market stability could bolster crypto confidence, potentially correlating with tech stock rallies that favor AI-driven tokens.

In summary, this analysis provides actionable insights for altcoin traders, emphasizing technical breakouts and liquidity dynamics. By focusing on verified signals like the OP breakout on January 10, 2026, investors can position for potential 2x gains, while staying vigilant on market indicators. This optimistic view underscores the resilience of cryptocurrency markets, offering strategies for both short-term scalps and long-term holds amid improving conditions.