Trader Explains What It Will Take for Altcoin Season to Start

According to one crypto trader, the total market capitalization of altcoins needs to increase by around 16% from its current level before the exuberant altcoin season kicks off.

A crypto trader has pinpointed a key metric that needs to be breached for the altcoin season to start. According to the trader, the total market capitalization of altcoins should increase by around 16% from its current level. Otherwise, volatility will continue during this period.

The trader is specifically monitoring the TOTAL3 index of cryptocurrencies with total market capitalization. According to the trader, this index should be breaking the record high of $1.13 trillion. Then it should start price discovery.

Meanwhile, the analyst notes that investor interest is shifting towards cryptos like PENGU coin. Here are the details.

Trader says what it takes for altcoin euphoria

According to the trader, the total market capitalization of altcoins needs to increase by around 16% from its current level before the exuberant altcoin season kicks off. Until then, volatility will continue.

In an X post on December 28, anonymous crypto trader Daan Crypto Trades pointed out. He pointed to TOTAL3, the total market capitalization of all cryptocurrencies except Bitcoin and Ether. He stated that this metric should surpass the all-time high of $1.13 trillion in 2021. Then the “euphoria” or “mania” (euphoria) phase should begin as it enters price discovery, he said.

According to TradingView data, TOTAL3 is currently at $962.78 billion. That’s up about 91.45% since January 1. According to Daan, trading will be volatile as long as TOTAL3 is between $840 billion and $1.1 trillion. He said he would be “a bit more cautious” if TOTAL3 falls below $800 billion.

Some analysts believe the overall crypto market has become more volatile as traders take a shorter-term view than in previous years. In an X post on December 28, Syncracy Capital co-founder Daniel Cheung said

Everyone has suddenly decided this cycle that it’s George Soros and is constantly watching hourly charts to time entry/exit and play with leverage. That’s why cryptocurrencies haven’t seen breakouts as fast as previous cycles.

Investors are starting to return to altcoins like PENGU coin

According to CoinMarketCap data, the top three gainers among the top 100 cryptocurrencies over the past seven days were Bitget Token (BGB), up 80.65%, Virtuals Protocol (VIRTUAL), up 42.30% and Pudgy Penguins (PENGU), up 31.63%.

Meanwhile, with Bitcoin’s dominance soaring to almost 60% amid a price pause in the last few days of 2024, investors’ growing belief is that it may be time to shift their accumulation strategies towards altcoins. Dyme, a pseudonymous crypto trader, wrote in an X post on December 27th

Altcoins, at this point, offer a much more optimal R/R [Risk/Reward] profile than Bitcoin. The time to DCA Bitcoin has been shelved for another 1.5+ years.

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