Current Market Rotation and Altcoin Season Situation

Capital Rotation Situation

When BTC and meme sectors adjust, funds flow into Ethereum ecosystem tokens and obscure altcoins. Established altcoins like XRP, ADA, XLM, and EOS have larger gains, with XRP returning to the top three by market cap, reaching 250 billion USD. These tokens have undergone a long period of bottom consolidation, lack hot concepts, have few retail chips, and are highly controlled by market makers, resulting in low resistance for upward movement.

Questions Related to Altcoin Season

This cycle has seen the addition of VC altcoins and meme coins, disrupting the rotation order, but market trends and cycles usually remain unchanged. The rise of obscure old coins indicates market risk; this round of altcoin season lacks ecological narratives, has more varieties and market caps than the last round, and relies on funds for upward movement, which feels hollow. It is unclear when the market will end, requiring clear negative news or a widespread short squeeze to appear.

Operational Suggestions

For old coins with significant short-term gains, consider reducing positions to take profits. From a time cycle perspective, the altcoin season is likely to continue for the next half month. Historically, the U.S. stock market is pressured around Christmas, which may drag down the crypto market. Pay more attention to Ethereum altcoins, as ETF funds have net bought ETH and the single-day purchase volume hit a new high last Friday. Their gains are not aggressive, and there is upward space; taking advantage of market corrections is a good time to enter.