Views on altcoins:
This round of the market will not see the previous 'all coins take off, everyone celebrates' altcoin trend.
Reason analysis:
1. The market is gradually maturing: The cryptocurrency market is trending towards maturity, and the survival of the fittest is an inevitable trend. Many low-value junk coins are gradually being eliminated, which means that those with real potential will see breakthroughs. The market has gone through multiple rounds of such replacements: a batch of failing coins disappears, while new innovative coins emerge.
2. Participant changes: Currently, most market participants are mature traders, rather than the previous 'newbies' in the crypto world. These mature participants tend to make rational decisions, avoiding blind following, and are not mindlessly buying all altcoins as before. The market competition between MEME and VC is the result of voting by mature traders.
3. TOTAL3 indicator: Although many altcoin prices are at low points, the TOTAL3 indicator shows that the overall market volume is close to the peaks of 2021. This indicates that although coin prices have fallen, the number of coins in the market has increased, and the value of many coins has become diluted, while the overall market still maintains a certain scale.
Strategy suggestions:
The characteristic of this market round is rapid rotation, so it is necessary to closely follow the hot tracks. According to market conditions, strategies can be divided into three tiers:
1. First tier: Hot coins
These coins usually have several times of growth potential at low points, making them the most promising choices in the short term.
2. Second tier: Regular coins
Most cryptocurrencies have limited room for growth, and price rebounds mainly come from recoveries after sharp declines, typically with an increase of around one time.
3. Third tier: Zero-value coins
These coins have already fallen to a point with almost no rebound potential. Even if there are short-term rebounds, their increase is very limited, and such coins should be avoided for holding.
Today's article ends here, welcome to come to the homepage to play together~
Investing carries risks, and the above content is personal sharing, not investment advice!