A closely followed crypto strategist believes that the altcoin market will go parabolic before the current crypto cycle ends.
Pseudonymous analyst Altcoin Sherpa tells his 217,600 followers on the social media platform X that one of two events likely needs to first occur before a massive alt rally takes off.
“Generally speaking, I think we need to see one of two things before a full-on altcoin run:
1. Final capitulation: usually this is some sort of last shakeout. See Solana [in chart below] in December 2020.
2. Another potential possibility is seeing some sort of longish consolidation period. See Zilliqa [in the second chart below].
I think one of these two things needs to happen first before any prolonged strong altcoin run. Many of these alt/BTC charts also look pretty bad. With that said, you should understand that alts are going to have a face-melting rally eventually. I just don’t know when or how it’s going to happen.”
The analyst also believes that historical precedent indicates how the next alt market rally could look.
“What’s the takeaway?
- Don’t hold coins for the long term in crypto. Few coins outperform BTC and ETH.
- Just because something was hot and mooned strongly in the past does not mean it will happen again. For example, GameFi (game finance) might never reach former 2021 highs.
- Narratives can repeat themselves. See alt layer-1s in mid-2021 versus early 2024. But they’ll be different flavors. Instead of SOL, LUNA, AVAX it was SEI, TIA and NEON.
- Better to hop on the hot sector. For example memecoins in 2024 versus sectors that don’t have any money in them yet.
- Ironically, I do think that DeFi (decentralized finance) will make a resurgence one day, I just don’t know when.”
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The post Analyst Says Altcoins Primed for a ‘Face-Melting Rally,’ Outlines What Needs To Happen First appeared first on The Daily Hodl.
