The crypto market is showing signs of an upcoming altcoin season, with historical patterns and market data signaling a strong potential explosion.
Therefore, investors are considering the right timing to accumulate altcoins.
Market trends reflect previous breakout cycles
Currently, most altcoins have significantly depreciated after corrections, leading the community to believe that the altcoin season has ended. However, history brings hope.
Analyst Danny points out that the current altcoin market structure is similar to 2017 and 2021 — two periods of strong explosions in the past. With the prediction that if investing $150 in small-cap altcoins at the right time, it could rise to $500,000 by August. This opportunity is creating a wave of excitement, although the risks are still very high.
Altcoin market capitalization | Source: Danny
"The altcoin market is preparing for an inevitable pump, similar to what happened in 2021," Danny shares.
TOTAL3 index signals breakout
In addition, a user on X named CrypFlow reported that the TOTAL3 index (total market capitalization excluding BTC and ETH) is signaling an upcoming breakout. The chart shows a potential upward trend as TOTAL3 has moved in a parallel channel since the bottom of the 2022 cycle.
TOTAL3 | Source: CrypFlow
Every time altcoins break the downtrend, they soar. According to CrypFlow, this has happened twice before in the current cycle — in October 2023 and November 2024.
"There is not much space left between the price channel and the downtrend. It seems that altcoins will explode in July!" CrypFlow comments.
With the current market volatility, many traders emphasize that July is a golden time to act, especially when the Bitcoin Dominance Index (BTC.D) has reached 66.4%. When BTC.D hits this level, capital often flows into altcoins, paving the way for an altcoin explosion.
Therefore, a strategy is needed to take advantage of this opportunity. The Stockmoney Lizards analysis group suggests a simple tactic called the "Low-IQ" strategy: Buy when RSI is below 30, diversify capital allocation, and take profit 30-50% when in profit.
This helps investors avoid falling into the FOMO (fear of missing out) trap.
"You won't get rich quickly, but you also won't lose everything like 99% of other altcoin investors," Stockmoney Lizards shares.
However, risks still exist: whales may dump their holdings and low liquidity can cause prices to drop suddenly. Investors should focus on altcoins with solid fundamentals rather than chasing speculative projects.
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