Altcoin Holders Enjoy Massive Profits
According to leading blockchain analytics firm Santiment, altcoin holders have been reaping significant profits since the market turned bullish in mid-October 2023. Many altcoin wallets have experienced substantial gains, with most crypto projects exhibiting bullish performances on a mid to long-term timescale.
Potential Risk of Overbought Market
Santiment has issued a cautionary note to investors, highlighting the presence of “overbought” levels in the market. While most crypto projects have generated profits, indicating a fair bit of overbought signals, it does not necessarily imply an imminent market correction. However, historical data suggests a higher risk of opening new positions in such circumstances, particularly for altcoins experiencing a 4+ month rally with elevated MVRV levels.
Anticipating Altcoin Season
Crypto analyst Dan Gambardello predicts the potential for an upcoming altcoin season led by Cardano (ADA) and Ethereum (ETH) if Bitcoin (BTC) dominance begins to decline. Based on previous market cycles, ADA and ETH have historically spearheaded upward trends before other altcoins joined. Monitoring Bitcoin’s dominance remains crucial in assessing the likelihood of an altcoin season.
Altcoin Market Cap Retracement
The altcoin market cap has slightly retraced from its recent peak above $900 billion and is currently hovering below this mark. This development indicates some consolidation or correction in the altcoin market after its significant growth.
Hot Take: Altcoin Holders See Massive Profits Amid Potential Risks
Altcoin holders have witnessed substantial profits as the crypto market turned bullish. However, caution is advised due to overbought signals observed by Santiment, indicating a higher risk of market correction. Additionally, crypto analyst Dan Gambardello anticipates a potential altcoin season led by Cardano and Ethereum if Bitcoin dominance declines. Monitoring Bitcoin’s dominance remains crucial to assess the likelihood of this trend. While the altcoin market has experienced some retracement from its recent peak, it continues to show promising growth. Altcoin holders should stay vigilant and consider the potential risks and rewards in their investment decisions.
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