Altcoins
Altcoin season is coming! Here are Raoul Pal’s top picks when it comes to cryptocurrencies
In a recent video analysis by Savvy Finance, analysts decoded the words of Real Vision founder and CEO Raoul Pal intuitions about the next altcoin season. Pal highlighted the phases of the market, referring to the current “boring zone” as almost complete and anticipating the transition to the “banana zone,” where significant market activity is expected. He predicted a 10-fold increase in the market capitalization of altcoins, excluding Ethereum, mirroring the patterns of the 2016-2017 cryptocurrency bull market.
Read on to learn more.
Ready for an “Alternative” adventure?
Savvy Finance has highlighted that a major altcoin season, known for significant price gains and market excitement, is just around the corner. Crypto analysts recently known as Mustache revealed that the 3W Gaussian channel has changed from red to green, indicating that it is strong altcoin season coming soon.
This is the period when altcoins will gain the most, as this is the powerful transition that occurs after 2020. Pal predicts that Ethereum and in particular Solana will perform better than Bitcoin, with Solana potentially seeing the most substantial gains in the next market cycle.
The “Banana” area of Pal
According to Raoul Pal, we are at the peak of the “banana patch,” a promising phase for altcoins, with Solana likely leading the way. He points out that while these opportunities take time to develop, they can offer huge rewards. With this year’s election, things will change heading into the fourth quarter when the market turns bullish.
Furthermore, he noted that the “biggest game” is the altseason or “Banana Zone,” referring to the altcoins’ huge increases and parabolic price charts. Bitcoin still dominates with a 52% market share. For the altseason to begin, this value must drop to the average level of 40%, as it did in the last cycle.
Ethereum vs. Solana: Who Will Lead?
Pal predicts that Ethereum will outperform Bitcoin and Solana will outperform both. He highlighted Solana’s strong chart patterns and low volatility as indicators of high earnings potential. Pal’s estimates suggest that Solana will be the best performer in the upcoming cycle. While showing his obsession with Solana, he also said that he has not given up on Bitcoin and is ready to buy the dip for Q4 earnings.
The ability to secure Ethereum approval and Solana ETF it could increase demand for these altcoins. Investment managers such as VanEck and 21Shares have applied for such ETFs, which, if approved, could attract new capital to the market.
Tips for investors
According to Pal, the best way to understand how markets work is to go through the Banana Zone and beyond. Using disciplined portfolio management techniques, he tells investors to be patient, take a long-term view, and be careful with their money.
Pal warns investors against rash judgments based on hype. He recommends avoiding leverage, investing primarily in the three to five tokens with the highest market capitalization, and allocating 10% to high-risk altcoins.
Don’t get FOMO when the altcoin party begins! Dive in now!
Read also: Crypto Market Report, Q2 2024: Solana and Litecoin Attract Combined Inflows of $3 Million Last Week