What needs to happen for altcoins to continue the bull market

According to a well-known crypto analyst known as Altcoin Sherpa, the altcoin market will enter a parabolic phase before the current crypto cycle ends.

Toy side two potential scenarios that could precede a significant rise in altcoins.

First, the analyst suggests that a final capitulation event, typically characterized by significant volatility, such as what happened to Solana in December 2020, may be necessary. Alternatively, a prolonged period of consolidation similar to that experienced by Zilliqa could prepare the ground for a strong surge in altcoins.

Altcoin Sherpa also highlighted the current underperformance of many altcoins relative to BTC, indicating bearish sentiment. However, he remains optimistic altcoins long-term, predicting a possible major rally, although the timing and catalysts remain uncertain.

Based on historical patterns, the expert highlighted that past rallies in the altcoin market offer insights into potential future scenarios. Sherpa advises caution with long-term cryptocurrency holdings, noting that few coins consistently outperform Bitcoin (Bitcoin) and Ethereum (ET). He also cautioned against assuming that previous high-performing industries, such as GameFi in 2021, will repeat their successes.

The analyst suggests instead focusing on emerging narratives in the cryptocurrency space, noting the shift from similar projects SOLMOON e AVAX to more recent equivalents such as YOU ARE A, TIA and NEON.

Despite current trends, the expert remains optimistic about the eventual revival of DeFi (decentralized finance), although he is not sure when this will happen.

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