Tuesday, April 23, 2024

The Upcoming Altcoin Season

Tom Lee, Fundstrat Global Advisors’ co-founder, believes in the season of altcoin. According to him, 9 small-cap coins were starting to make some solid gains. However, Jeff Dorman, Chief Investment Officer of blockchain-oriented asset manager, Arca says it’s not worth waiting for the next season


Igniting the Altcoin Season

Initiating this altcoin season are the two leading altcoins; Ethereum and the XRP of Ripple. XRP is a commodity sponsored by cryptocurrency networks such as On-Demand Liquidity and RippleNet from Ripple. Let’s dig at the two altcoin giants more closely.


Nearly all the altcoin prices rely on bitcoin. Altcoin season proved to be profitable in the past for individuals who were able to spot the trends in time. The term comes from previous experiences as investors have been able to make a lot of cash from the price increases in altcoins in 2016-2017 over an extended period of time.


Compared to the strategy of pumping and dumping, not only does a random coin begin to increase during the altcoin season, but several coins, usually the most prominent, gain value. This can have a spillover effect on the rest of the coins if it continues for a longer period of time, contributing to a general increase in the altcoin market value.




Start of the Altcoin Season?


The current structure of the market shows that we could be at the start of this vital season. Despite the signs, no real evidence has surfaced to confirm such predictions. The altcoin season has been in its initial stages for more than seven weeks and this is apparent with the rise in the hegemony of altcoins combined with a resulting fall in the value of bitcoin.


Since pumping over $10,000 on Oct. 26, the number one cryptocurrency has been in a slow bleed. Bulls had expected that $8,600 in funding would halt the selloff, but the bears have the upper hand so far. Although the absence of bullish momentum increasingly frustrate the maximalists of bitcoin, the chop is a blessing for altcoin traders.


Igniting this altcoin season are the two leading altcoins; Ethereum and the XRP of Ripple. Ethereum looks forward to releasing Ethereum 2.0. On the other side, XRP is a commodity sponsored by cryptocurrency networks such as On-Demand Liquidity and RippleNet from Ripple. Let’s dig at the two altcoin giants more closely.


XRP and Ethereum

Since the falls in September, Ripple’s XRP price action has been remarkable. The daily chart shows that XRP maintained an uptrend in a rising channel until Wednesday, October 23, as a drop took place. The bearish wave affected the entire crypto market, but by bouncing off the support at $0.25 XRP was able to beat down the losses. 


Ethereum floats above $160 after recovering at $155 from the recent support. The price drops to the same rates in September before heading back to the area just below $200. The fall observed was a continuation of the unsuccessful attempt to break $230 in September the same month. Nevertheless, with the development of a double-bottom pattern, the crypto seems to have reached a bottom.


Bitcoin must suffer a massive waterfall event in order to trigger a real alt season. Other scenarios could arise where even though Bitcoin remains relatively static, money will move into other crypto tokens.


In the case that Bitcoin supremacy loses 68 percent of key support, a revival of the altcoin market could take place. A verified push below this point is likely to trigger a revival in altcoins.


Bitcoin Dominance


After showing strength for so long, BTC dominance may actually be on the cusp of rolling over and falling. After September, BTC hegemony has been unable to reach the 70 percent barrier and seems to be falling.


The Bitcoin supremacy is a statistic that can show the value of Bitcoin compared to the whole cryptocurrency industry as it calculates the position of Bitcoin in the overall cryptocurrency market


BTC hegemony has started to recover stronger, but there is no impetus to support it. When BTC hegemony continues to fall, at the rate of 66 percent, we should expect immediate help. If dominance drops below here, we would anticipate altseason version 2.0 to begin pretty soon as it would imply that BTC supremacy would be turning bearish officially.


Volatility has started to increase, indicating significant changes in price could occur. One crypto researcher, though, suggests that an alt season will not take place before liquidity returns to the economy, and Bitcoin in particular.


Altcoin uncertainty continues to ramp up over and over again. Experts suggest that the cause of this is the reduced price of Bitcoin. The fall in price has propelled a slowdown in hobby and unparalleled confusion on the market, or lingering effects in October attributable to China’s media pump abet.


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