In the cryptocurrency space, everyone is eagerly waiting for a major breakout in altcoins. However, it often feels like we are waiting endlessly without much progress. Usually, the best time to buy is when the price is at or above the bull support band. Currently, according to analysts at “The Fomo Factory”, the market is showing some encouraging signs.
Analysts note that if there is a major altcoin season, it will likely be the smallest one yet, which makes sense. In previous cycles, there were fewer altcoins available, but now the market is flooded with meme coins, the new Solana coin, and a large number of IDOs. This surge dilutes potential gains and makes it harder to see the huge returns of past cycles.
Investors should look for tokens with staying power, such as Bitcoin and Ethereum, and major Layer-1 tokens, such as Solana and BNB. These are considered safer choices. However, even in categories such as gaming, there are many poor quality projects, so caution is advised.
Bitcoin’s dominance is rising, which suggests that the market is centered around Bitcoin rather than an altcoin season. However, according to historical patterns, an altcoin season could occur about eight months after the most recent Bitcoin halving, which would be around the end of this year.
The analyst said that the assessment of altcoins is based on their performance against Bitcoin rather than the U.S. dollar. He pointed out that although altcoins have not yet fallen to their lowest levels, they are still far from their highest levels, and many altcoins have performed poorly against Bitcoin.
He recommends focusing on specific altcoins that have shown significant gains during the overall market rally. For example, during the 70% market rally against Bitcoin, altcoins like Cify and ChainGPT surged by 430% and 490% respectively. This suggests that Launchpad could be strong
He cited some strong performers such as Solana (up 520% against Bitcoin between June and December) and Superverse (which also posted significant gains). These examples suggest that focusing on certain narratives, such as game ecosystems, can be beneficial.
