The cryptocurrency market shows signs of an impending altcoin season, with historical patterns and market data indicating the potential for a significant rally.
Investors are evaluating the right opportunity to accumulate altcoins.
Market trends reflect previous launch cycles
Currently, most altcoins have lost significant value after market corrections, leading the community to believe that the altcoin season has ended. However, history offers hope.
Analyst Danny points out that the current structure of altcoins resembles the years 2017 and 2021, both explosive cycles. With expectations that an investment of $150 in low market cap altcoins at the right time could turn into $500,000 by August, this opportunity generates excitement, despite the significant risks.
Danny's view on the altcoin cycle for 2025. Source: Danny
"The altcoin market is on the verge of an inevitable rise - just like it happened in 2021," shared Danny.
TOTAL3 indicates a launch
Furthermore, X user Cryp,,Flow notes that the TOTAL3 index (total market capitalization excluding $BTC and $ETH
) indicates an imminent launch. Charts show a potential upward trend as TOTAL3 has moved within a parallel channel since the cycle's low in 2022.
TOTAL3.
Every time altcoins break the downtrend, they rise to the top. Cryp,,Flow observes that this has happened twice before this cycle, in October 2023 and November 2024.
"There isn't much space left between the channel and the downtrend. It seems that altcoins will explode in July!" stated Cryp,,Flow.
With the current market volatility, many traders affirm that July is the golden time to act, especially with Bitcoin dominance (BTC.D) reaching 66.40%. When BTC dominance hits this level, capital often flows into altcoins, paving the way for an explosion of the altcoin season.
Strategy is key to seizing this opportunity. Stock,,money Liz,,ards suggests a "low-intelligence" approach: buy when the RSI is below 30, diversify capital, and take profits of 30-50%. This helps avoid the fear of missing out.
"You won't get rich quickly. But you also won't lose everything like 99% of altcoin traders," shared Stockm,,oney Liza,rds.
However, the risks remain, as whales are disposing and low liquidity can lead to sudden price drops. Investors should focus on altcoins with strong fundamentals instead of speculative projects.