A well-regarded crypto strategist predicts that the altcoin market will experience a significant surge before the current crypto cycle comes to an end.
Altcoin Sherpa, an analyst who goes by a pseudonym, informs his 217,600 followers on the social media platform X that there are two possible scenarios that could precede a massive rally in altcoins.
“In general, I believe that we need to witness one of two occurrences before a full-fledged altcoin surge:
1. Final capitulation: typically, this involves a last shakeout, as seen with Solana in December 2020.
2. Another potential scenario is a prolonged consolidation period, as seen with Zilliqa in the second chart below.
I believe that one of these two events must happen before we can expect a sustained altcoin rally. Many of these alt/BTC charts also appear unfavorable. However, it is important to understand that altcoins will eventually experience a remarkable rally, although the exact timing and manner of this rally remain uncertain.”
The analyst also suggests that historical patterns can offer insights into how the next altcoin market rally might unfold.
“What can we learn from this?
Avoid holding coins for the long term in the crypto market. Only a few coins outperform BTC and ETH.
Just because something had a strong surge in the past does not guarantee a repeat in the future. For example, GameFi might never reach its previous highs from 2021.
Narratives can repeat themselves, but they will take on different forms. For instance, in mid-2021, we saw a rise in alt layer-1s, while in early 2024, we might witness a different set of altcoins. Instead of SOL, LUNA, and AVAX, it could be SEI, TIA, and NEON.
It is better to invest in the current trending sector, such as memecoins in 2024, rather than sectors that have yet to gain momentum.
Ironically, I do believe that DeFi will make a comeback in the future, but the timing is uncertain.”
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