Few Cryptocurrencies To ‘Survive’ The Altseason
As the cycle progresses, many investors are awaiting the long-anticipated Altseason, with opinions split on whether it will happen. Several market watchers have affirmed that Altcoins (Alts) are getting ready for an explosive breakout, but others, including CryptoQuant’s CEO, have suggested a different outlook.
Altcoin Markets are a Zero-Sum PvP Game
According to Ki Young Ju, CryptoQuant’s founder and CEO, the Altseason has begun. In an X thread, Ju suggested that there will not be a direct Bitcoin-to-alt rotation this cycle, noting that “stablecoin holders are favoring” Altcoins. He explained that Bitcoin is no longer a quote cryptocurrency, adding that Bitcoin (BTC) Dominance doesn’t define the altseason anymore.
Trading Volume is the Metric that Defines it
Instead, he stated that trading volume is the metric that defines it, with Altcoins currently having 2.7x the volume of Bitcoin. Ju also considers this to be a very selective and challenging altseason, with only a few Altcoins with strong user cases and narratives expected to thrive.
Only a Few Altcoins with Strong Use Cases will Survive
He added that, despite good market sentiment, there isn’t fresh liquidity, which “feels like a PvP fight over a fixed pie.” As a result, Altcoin battles “are getting fiercer,” and only a few are pumping this altseason and attracting new liquidity.
Altcoins Ready for Next Leg Up
Trader Crypto Yoddha suggested that Altcoins are “ready for round 2” after its recent performance. According to the post, the crypto market, excluding BTC and ETH, is following 2020-2021’s playbook.
Altcoins’ Chart Resembles 2020-2021 Rally
During the last cycle, Altcoins experienced two legs towards its cycle top and all-time high (ATH) of $1.13 trillion. In the “first round,” they broke out from its accumulation period, seeing a small re-accumulation phase before surging to the previous top.
Altcoins Must Close Above $280 Billion to Confirm Breakout
Per the post, Alts must close above $280 billion and retest this level as support to confirm a breakout from its three-week resistance and attempt to reclaim the $300 billion mark. Similarly, analyst Carl Runefelt stated that Altcoins have a parabolic move after breaking out of its two-month descending channel. Alts saw a 120% climb after breaking out of a 2024 multi-month descending channel. Altcoins must reclaim the $300 billion resistance to break from this pattern.
Conclusion
The opinions are divided on whether the Altseason will happen, with some expecting an explosive breakout and others, like CryptoQuant’s CEO, suggesting a different outlook. While the market is waiting for the Altseason, a few Altcoins with strong user cases and narratives are expected to thrive. The market is currently a zero-sum PvP game, with only a few Altcoins pumping and attracting new liquidity.
