Current Market Rotation and Altcoin Season Situation

Capital Rotation Situation

When BTC and meme sectors adjust, funds flow into Ethereum ecosystem tokens and lesser-known altcoins. Established altcoins like XRP, ADA, XLM, EOS, etc., have seen greater increases, with XRP returning to the top three by market cap, reaching 250 billion USD. These tokens have undergone long periods of bottom consolidation, lacking hot concepts, with few retail holdings, and are highly controlled by whales, resulting in low resistance to price increases.

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 price increase of lesser-known old coins indicates market risk, as this altcoin season lacks ecological narratives, with more varieties and market caps than the previous cycle; the reliance on capital for price increases is relatively weak, and it's uncertain when the market will end, requiring clear negative news or widespread short squeezes to trigger a change.

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, U.S. stocks face pressure around Christmas, which may drag down the crypto market. Pay more attention to Ethereum and altcoins, as ETF funds have net bought ETH and the single-day purchase volume reached a new high last Friday; their price increase is not steep, leaving room for upward movement. It is a good time to enter the market during the correction.