Renowned cryptocurrency analyst Altcoin Sherpa claims that the altcoin market will enter a parabolic phase before the current crypto cycle ends.
Overview
Two potential scenarios that may occur before a significant rise in altcoins.
Firstly, the analyst suggests that a final capitulation event, typically characterized by violent fluctuations, such as the case with Solana in March 2020, may be necessary, or a prolonged consolidation similar to what Zilliqa experienced could lay the groundwork for a strong surge.
Altcoin Sherpa also emphasizes the poor performance of many altcoins relative to BTC, indicating bearish sentiment. However, he remains optimistic about the long-term prospects of altcoins, expecting a significant rebound despite the uncertain timing and catalysts.
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Experts point out that historical patterns in the altcoin market provide insights into potential future scenarios. Sherpa advises caution for long-term holders of cryptocurrencies, noting that few cryptocurrencies can consistently outperform Bitcoin (BTC) and Ethereum (ETH). He also warns against assuming that previously successful sectors, such as GameFi in 2021, will repeat their success.
Instead, the analyst recommends focusing on emerging narratives in the cryptocurrency space, highlighting the transformations of projects like SOL, Luna, and AVAX, as well as updated equivalents such as Sushi, TIA, and Neon.
Despite current trends, the expert remains optimistic about the eventual revival of DeFi (decentralized finance), though uncertain about when it might occur.
Many altcoins will not reach their previous ATH
The situation has changed since 2021, so I will talk about this topic. Researching DeFi 1.0 is important
$AAVE
$COMP
etc. return to 2021
Background: In 2020, DeFi was just emerging; we went through the DeFi summer. Uniswap and dexes became popular…
pic.twitter.com/gLIgYHPChe
-Altcoin Sherpa (@AltcoinSherpa)
June 21, 2024