Recently, there has been an increase in investment in large-cap altcoins, leading to rapid price increases and a rise in market excitement. However, since the beginning of June, the value of the cryptocurrency market excluding Bitcoin has fallen from $1.19 trillion to $967 billion, a drop of more than 17%. This drop suggests that capital is being withdrawn from altcoins, causing their value to fall. However, this trend is part of general market dynamics and investor sentiment, indicating that altcoin season is still brewing.
For those unfamiliar, altcoin seasons follow a predictable pattern that can be broken down into four distinct phases, each of which impacts the market in unique ways. In the first phase, capital flows primarily into Bitcoin. Bitcoin's price rises dramatically as investors pour capital into the largest cryptocurrency. During this phase, some capital begins to flow into Ethereum, but Ethereum's performance will likely continue to fluctuate with Bitcoin's.
In the second phase, capital began to favor Ethereum more. The king of altcoins began to consistently outperform Bitcoin, sparking discussions about the possibility that Ethereum could surpass Bitcoin's market capitalization, the so-called "flip". As Ethereum gained attention, high-market-cap altcoins began to receive more investment, leading to a significant increase in price.
In the third phase, capital inflows into high-cap altcoins other than Bitcoin and Ethereum begin to increase. While Ethereum continues to perform strongly, high-cap altcoins typically experience rapid price increases, described as "parabolic rises." During this period, fundamentally sound altcoins begin to see strong price increases regardless of market capitalization.
The final phase is known as the altcoin season, during which capital flows into a variety of altcoins regardless of market cap. A sharp rise in the prices of major altcoins is followed by a sharp drop known as a “dump top.” Small and medium-cap altcoins also begin to rise. This phase is characterized by a growing sense of excitement and bullish sentiment.
Potential altcoins worth paying attention to now
NEAR
NEAR Protocol is currently trading in a range of $4.52 to $5.79, showing some resilience. Bulls appear to be gathering strength as it holds above the nearest support at $3.85. If the current momentum continues, NEAR could test the $6.39 resistance level, which would be a solid gain. A breakout above this level could target the next resistance at $7.66. This potential gain represents a significant upside from current levels. Despite a 34.34% drop in the past month, the coin has surged over 40% in the past six months, hinting at significant growth potential as the market enters a bullish phase.
ARB
Arbitrum (ARB) is currently trading between $0.71 and $0.90 with a slightly bearish trend, down -0.32% in the past week and -34.10% in the past month. Despite this, ARB has shown resilience at key support levels such as $0.63. Bulls are eyeing the nearest resistance at $1.01, which is achievable if the momentum is right. If ARB breaks above this level, it could head towards the next resistance at $1.20, which would mean a possible upside of more than 30% from current levels. The RSI is at 46.86 and the Stochastic is at 30.30, which indicates that the coin is not overbought, suggesting room for growth.
ZK
zkSync (ZK) is currently trading between $0.077 and $0.277, bouncing around its support levels. Despite a drop of nearly 30% in the latest week, the coin is up 66% in the past month, indicating growth potential. The nearest resistance is at $0.386, a break above which could push the price higher, eyeing the second resistance at $0.586. This would imply a possible upside of more than 110% from the lower end of the current range. The RSI and other indicators show a solid balance, slightly tilted towards bullish momentum. If this trend continues, zkSync could be on the verge of an exciting climb higher.
STRK
Starknet (STRK) is currently trading in the range of $0.60 to $0.87. Despite a 46.1% drop in the latest month, the coin has surged 249.1% in the past six months, showing strong long-term potential. Bulls and bears are in a tug-of-war with the RSI at 51.9 and the Stochastic level at 54.36. The nearest resistance is at $1.04, a breakout of which could propel STRK to $1.31, which would mark a nearly 100% gain from the lower boundary of the current range. The Simple Moving Average and MACD suggest stability with upside potential.
HBAR
Hedera (HBAR) has seen a lot of price volatility recently, reaching a peak of $0.08454 this week. This has certainly piqued the interest of some investors and could lead to increased buying activity. Moreover, a decisive breakout above the $0.09 barrier could spark bullish momentum. Despite the current uncertainty, there is a long-term bullish view on the Hedera cryptocurrency. Technical indicators such as the RSI and MACD suggest a target price of $0.1501 by the end of 2024.