According to a crypto trader, the total market value of altcoins needs to increase by about 16% from its current level for the altcoin season to begin. Otherwise, the market will continue to fluctuate. The trader notes that the TOTAL3 index should be followed closely to monitor this process. This index shows the total altcoin market value and if it exceeds the record level of $ 1.13 trillion, it is expected to enter the price discovery phase. In addition, the trader believes that investor interest in PENGU coin$PENGU
He emphasizes that he is turning to new cryptocurrencies such as. Here are the details…
According to one crypto trader, the total market value of altcoins needs to increase by about 16% before the altcoin euphoria begins. If this increase does not occur, market volatility will continue. Anonymous trader Daan Crypto Trades noted in a post on December 28 that TOTAL3, the total market value of all cryptocurrencies other than Bitcoin and Ether, should be monitored. Daan said that this index should exceed $1.13 trillion, its all-time high in 2021. He stated that if it exceeds this level, price discovery will begin and the "euphoria" or "mania" phase will enter.
According to TradingView data, TOTAL3 is currently trading at $962.78 billion, which is an increase of approximately 91.45% since January 1. Daan said that as long as TOTAL3 remains between $840 billion and $1.1 trillion, the market will be volatile, and if TOTAL3 drops below $800 billion, a more cautious approach will be taken.
Some analysts believe that the crypto market has become more volatile as traders adopt a shorter-term perspective than in previous years. “Everyone has suddenly decided that they are George Soros this cycle and are constantly watching hourly charts, timing entries/exits and playing with leverage. Because of this, cryptocurrencies have not experienced as many rapid breakouts as in previous cycles,” Syncracy Capital co-founder Daniel Cheung wrote on Dec. 28.
The top three cryptocurrencies that gained the most in the last seven days were Bitget Token (BGB) with an increase of 80.65%, Virtuals Protocol (VIRTUAL) with an increase of 42.30% and Pudgy Penguins (PENGU) with an increase of 31.63%. Meanwhile, with Bitcoin dominance reaching 60% towards the end of 2024, investors’ increasing confidence is interpreted as the time to turn to altcoins. Crypto trader Dyme said in a post on December 27, “Altcoins currently offer a much better Risk/Reward (R/R) profile than Bitcoin. The time for a DCA for Bitcoin has been postponed for at least another 1.5 years.”