Bitcoin – Weak hands cashing out is good news for memecoins or altcoins?

  • Altcoins have recorded notable surges, with top ones seeing double-digit gains
  • However, despite this, memecoins remains a step ahead.

As a seasoned market analyst with over two decades of experience under my belt, I have witnessed numerous market cycles and trends come and go. The recent surge in altcoins is indeed noteworthy, but it seems that memecoins are still holding the baton.


As a researcher, I’ve noticed an intriguing trend in the market: approximately 60% of the top performers this week are altcoins. This seems to indicate a significant shift from previous cycles, where alts have been outperforming memecoins. For instance, Cardano [ADA] has shown impressive weekly gains exceeding 25%.

Nevertheless, as these digital currencies near record-breaking resistance points, there’s growing apprehension about an impending market adjustment. Interestingly, a coin owner recently invested 235 Ether to obtain 33.35 million Dogecoin.

During the upcoming weekend, it’s anticipated that altcoins might experience a positive trend due to some Bitcoin holders selling their coins for profits. However, be aware that there’s a possibility the market may follow trends similar to past cycles.

Altcoin season might take longer to kick off

In simpler terms, when Bitcoin (BTC) reaches a peak before a possible decline, also known as a top, it often sets off a period of growth for alternative cryptocurrencies (altcoins) or popular meme-based cryptocurrencies. This happens because as less experienced investors, or those with ‘weak hands’, sell their BTC in fear of a potential market correction near a critical risk zone, a large amount of liquidity shifts towards high-value coins.

For example, Dogecoin saw significant growth between mid and late October, breaking loose from a 8-month long holding pattern, while Bitcoin underwent considerable declines during that same timeframe.

During that period, Ethereum, the world’s leading alternative coin, didn’t meet expectations and showed no significant growth. This was unusual because it was the first instance where ETH didn’t grow when Bitcoin reached a resistance point.

Instead, contrasting the previous periods, ETH experienced a weekly growth of more than 16%. This substantial increase has increased the likelihood of an altcoin rally, as its market capitalization swelled by 3% to reach $351 billion. This development brings comfort to over 3 million addresses that are now enjoying profits.

Bitcoin – Weak hands cashing out is good news for memecoins or altcoins?

Source : IntoTheBlock

If those who sold Ethereum (ETH) for Dogecoin (DOGE) when ETH approached the significant price point of $3K choose to persist in this pattern, it could potentially encourage other wallet holders to do the same.

Consequently, it seems that the ‘altcoin season’ may experience a delay, as liquidity could shift towards memecoins. This could initiate a cycle of memecoins instead.

A memecoin cycle seems more likely

Dogecoin’s weekly growth surpassed 20%, outperforming other altcoins. However, there seems to be more than just this rally driving the increase. Elon Musk’s persistent backing of Dogecoin and his expanding political clout have undeniably contributed significantly to Dogecoin’s upward trend.

Bitcoin – Weak hands cashing out is good news for memecoins or altcoins?

Source : IntoTheBlock

After the election outcomes, significant investors have amassed approximately $800 million worth of DOGE. This is evident from the recent surge in its value, approaching the $0.20 level.

In order to set an example for other meme coins, Dogecoin should take the initiative to maintain its position at the forefront, ensuring other meme coins remain profitable. This is particularly important given that many meme coins built on the Solana platform are currently struggling to keep pace.

The coming week is expected to see changes in the market. At present, memecoins are leading the way over altcoins. However, this situation might not persist in the long run, especially considering that experts forecast Bitcoin could reach $80,000 soon.

Read More

2024-11-09 10:15