Recent altcoin rallies provide insights into altcoin season dynamics. Key observations:
1. Dominant Narratives:Almost every altcoin surges, but top performers align with dominant narratives like AI,$SOL Ecosystem, Gaming, and Ordinals.
2. Minimal Pullbacks:Rare large drops make waiting for entries less effective. Buying during pullbacks on strong tokens is strategically advantageous.
3. Scam Coin Phenomenon:Coins with little utility often see significant pumps, highlighting the disparity between perceived value and utility.
4. Patience Pays Off:Allowing tokens to run is crucial; altcoins average a 70% increase in 30 days. Selling too early may mean missed substantial gains.
5. Winners Keep Winning:Tokens with massive pumps tend to sustain performance. Betting on previous winners during a rally can be profitable.
6. Risk Management: As trends reverse, compounding losses is common. Effective risk management is essential to avoid chasing losses.
7. Diversification and Unit Bias: Diversify across large and low-cap tokens, considering low unit bias, for optimal gains in various market conditions.
8. Strategic Bets: It's unnecessary to invest in every token. Focusing on sectors like AI can yield substantial returns (e.g., $FET, $AGIX, $RNDR).
9. Trailing Profits: Instead of selling prematurely, consider trailing or taking partial profits to maximize gains without missing substantial multiples.
These insights are ongoing and may be updated as market conditions evolve.
