- Altcoins have registered notable increases, with the top coins posting double-digit gains
- Nevertheless, memecoins remain one step ahead.
With 60% of the weekly top performers being altcoins, it is clear that there is a shift happening in the market. Unlike previous cycles, alts have outperformed memecoins at Cardano [ADA] alone with weekly gains of over 25%.
However, as these currencies approach – some even surpass – historical resistance levels, uncertainty around a possible correction is growing. In fact, recently a wallet holder spent 235 ETH to buy 33.35 million DOGE.
While the weekend is expected to be bullish for alts, driven by weak BTC hands dumping on profits, there is a chance the market will repeat patterns from previous cycles.
It may take longer for the Altcoin season to start
For context, a BTC summit is an important precursor to triggering an altcoin season or a memecoin super cycle. The reasoning is simple: when weak hands exit the market, fearing a possible correction as BTC approaches a critical risk zone, significant liquidity flows into highly capitalized coins.
For example, DOGE posted huge gains in mid-to-late October, breaking away from an eight-month consolidation, even as BTC saw notable pullbacks during the same period.
Meanwhile, Ethereum, the world’s largest altcoin, performed disappointingly in the same time frame, marking the first time ETH failed to gain traction as BTC reached a resistance level.
However, unlike before, ETH posted a weekly gain of more than 16%. This strong recovery has increased the chances of an altcoin season, with the market cap rising 3% to $351 billion, providing relief for more than 3 million addresses that are now making profits.
Source: IntoTheBlock
If wallet holders – who sold $500,000 worth of ETH for DOGE as ETH approached a key psychological level of $3,000 – continue this trend, it could spur even more holders to follow suit.
As a result, altcoin season may be postponed, potentially allowing liquidity to flow into memecoins. This would instead trigger a memecoin cycle.
A memecoin cycle seems more likely
DOGE’s weekly gains rose more than 20%, outpacing altcoins, but there seemed to be more to this rally. With Elon Musk’s continued support for Dogecoin and its growing influence in politics richhis support has undeniably paved the way for the rise of DOGE.
Source: IntoTheBlock
After the election results, major holders collected more than $800 million in DOGE. This can be proven by the recent price spike, which is approaching the $0.20 mark.
Is your portfolio green? Check out the Dogecoin profit calculator
As an old memecoin, Dogecoin must take the lead to keep other memecoins in the green. Especially since the major Solana-based memecoins are still lagging behind.
The coming week will likely bring shifts in the market. Given the current market dynamics, memecoins remain one step ahead of altcoins for the time being. However, this could change in the long run, especially as analysts predict that BTC could break $80,000 next.