- Altcoin season is here, as more tokens have outperformed BTC in the past 90 days.
- The altcoin rally had more room for growth, but analysts remain cautious.
As a seasoned crypto investor with battle-tested nerves and an eye for spotting trends, I can confidently say that we are witnessing the dawn of an exciting altcoin season. The past 90 days have been a rollercoaster ride, but the impressive performance of tokens like HBAR, XRP, DOGE, and others against the king coin BTC has caught my attention.
The much-awaited altcoin season is here after strengthening into December.
Based on information from Blockchain Center, the Altcoin Season Index reached a 12-month peak of 82. This suggests strongly that we’re in an ‘Altcoin Season’, rather than Bitcoin‘s [BTC] dominance.
Top gainers – HBAR, XRP, DOGE
In simpler terms, these high-ranking digital assets (Ripple [XRP], Hedera [HBAR], Stellar [XLM], and Dogecoin [DOGE]) surpassed Bitcoin, the leading cryptocurrency, in performance.
Over the last three months, HBAR has experienced impressive growth of more than 600%, with XLM and XRP not far behind at approximately 515% and 402%. However, Ethereum [ETH] and Binance Coin [BNB] have trailed behind Bitcoin’s performance.
A decline in Bitcoin dominance (BTC.D) accelerated the impressive altcoin surge in November.
21st November saw BTC.D reach a high of 60%, however, it has since dropped to 54%. This decline has provided an opportunity for the altcoin market to expand, as investment capital shifts away from Bitcoin and moves towards other sectors.
Indeed, the increase in altcoins might continue if past patterns persist. Notably, as we speak, OTHERS – a tool that monitors the altcoin market excluding the top 10 tokens – has shown an upward trend relative to Bitcoin over the past month.
The ratio surpassed a significant 50-day moving average, yet it remains some distance from the upper resistance level, causing a dampening effect on the momentum similar to the declines seen in 2017 and 2021.
If history tends to repeat itself, it’s possible that other cryptocurrencies or Bitcoin (BTC) could challenge overhead resistance, potentially driving a rally within the sector. This scenario might occur if Bitcoin’s dominance continues to be restrained.
Nevertheless, CryptoQuant’s founder, Ki Young Ju, warned that an increase in ETF providers and institutions involved in Bitcoin might prevent the traditional rotation of capital from Bitcoin to other cryptocurrencies.
The upcoming altcoin rally may not turn out as you anticipate; it’s likely to be unusual and tough. A select group of participants will emerge victorious in this game. Despite optimistic market feelings, there’s a scarcity of new funds available.
Analysts are anticipating a potential “sell-the-news” scenario around Donald Trump’s inauguration in January 2025. In such an event, it might be important to adjust your investment strategies ahead of time to protect your funds.
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2024-12-04 01:43