The Crypto Market Shows Signs of Greed Ahead of Altcoin Season
The crypto market is displaying signs of greed as it prepares for the upcoming altcoin season, leading to significant price surges in assets like Akash Network (AKT) and Arcblock (ABT).
Trader Sentiment Shifts from Fear to Greed
With the altcoin season approaching, trader sentiment has shifted from fear to greed. This shift is often an indication of a local top or a market peak before a correction. According to market intelligence platform Santiment, extreme interest in altcoins from traders typically signifies greed.
Speculative Assets and Market Trends
Santiment suggests that trader sentiment towards more speculative assets can serve as a reliable indicator of market trends. An increase in calls for an altcoin season, where altcoins outperform Bitcoin (BTC), can be a useful metric to track as the market recovers from recent dips.
Repetition of July Pattern
Data from Santiment reveals a repetition of the pattern observed in July. A spike in discussions about the altcoin season occurred in July, indicating a market top. This trend is currently unfolding, resulting in the recent price drop across various cryptocurrencies.
Surge in AKT and ABT Prices
Despite the recent market dip, several altcoins have experienced a recovery, with AKT and ABT leading in 24-hour gains. Akash Network has rallied 21.4% over the past day and 36.6% over the last week.
Akash Network’s Comeback
Akash Network’s price decline on December 11 was followed by a recovery and subsequent surge. The token reclaimed the $2 price territory and is currently trading at $2.28.
Arcblock’s Significant Price Increase
Arcblock, unlike AKT, consolidated for a period before starting its recent uptrend. The crypto asset rallied 101% within 24 hours, reaching a price territory not seen since July 2019. ABT is currently trading at $0.2479, up 57% in the last day.
Considerations for Altcoin Season
While an altcoin season can result in substantial gains for investors, it also brings increased volatility and risk to the market.
Hot Take: Greed Signals a Local Top in the Crypto Market
The crypto market’s shift from fear to greed ahead of the altcoin season may indicate a local top and potential correction. Trader sentiment towards speculative assets serves as a reliable indicator of market trends. As altcoin discussions increase, signaling an altcoin season, it is crucial to monitor the market’s recovery from recent dips. While assets like Akash Network and Arcblock have experienced significant price surges, investors should be aware of the heightened volatility and risk associated with altcoin seasons.
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