Altcoins
Analyst Says Altcoins Are Ready for a ‘Face Melting Rally,’ Outlines What Needs to Happen First
A closely followed crypto strategist believes the altcoin market will go parabolic before the current crypto cycle ends.
Altcoin analyst pseudonym Sherpa tells from his 217,600 followers on social media platform
“Overall, I think we need to see one of two things before we launch full-fledged altcoins:
1. Final capitulation: This is usually some sort of final shake-up. See Solana [in chart below] in December 2020.
2. Another potential possibility is to see some sort of long period of consolidation. See Zilliqa [in the second chart below].
I think one of two things needs to happen before any sustained, strong altcoin run. Many of these alt/BTC charts also look pretty poor. That said, you should understand that sooner or later alts will have an earth-shattering rally. I just don’t know when or how it will happen.
Source: Altcoin Sherpa/X Source: Altcoin Sherpa/X
Even the analyst you think this historical precedent indicates what the next alternative market rally might look like.
“What’s the takeaway?
- Don’t store coins long-term in cryptocurrencies. Few coins surpass BTC and ETH.
- Just because something was hot and moody in the past doesn’t mean it will happen again. For example, GameFi (game finance) may never reach 2021 highs.
- Narratives can repeat themselves. See layer-1 alts in mid-2021 versus early 2024. But they will be different flavors. Instead of SOL, LUNA, AVAX there were SEI, TIA and NEON.
- Better to focus on the hot sector. For example, memecoins in 2024 compared to sectors that do not yet contain money.
- Ironically, I think DeFi (decentralized finance) will make a comeback one day, but I don’t know when.”
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