A closely watched 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
“Overall, I think we need to see one of two things before a full altcoin run happens:
1. Final capitulation: usually this is some kind of final shakeout. See Solana [in chart below] in December 2020.
2. Another possibility is seeing some sort of long consolidation period. See Zilliqa [in the second chart below].
I think one of these two things has to happen first for a sustained strong altcoin run to happen. A lot of these alt/BTC charts look pretty bad too. That said, you have to understand that alts will eventually have a meltdown rally. I just don’t know when and how it will happen.”
The analyst too believes that historical precedent suggests what the next alt-market rally could look like.
“What’s the takeaway?
- Don’t keep coins in crypto for the long term. There are few coins that outperform BTC and ETH.
- Just because something was hot and strong in the past doesn’t mean it will happen again. For example, GameFi (game financing) could never reach the former highs of 2021.
- Stories can repeat themselves. See alt layer-1s mid 2021 versus early 2024. But they will be different flavors. Instead of SOL, LUNA, AVAX it was SEI, TIA and NEON.
- It is better to jump on the hot sector. For example, memecoins in 2024 versus sectors in which there is no money yet.
- Ironically, I think DeFi (decentralized finance) will experience a resurgence one day, I just don’t know when.”
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Generated image: DALLE3