Renowned cryptocurrency analyst Altcoin Sherpa claims that the altcoin market will enter a parabolic phase before the current crypto cycle ends.
Key Points
Two potential scenarios that may occur before a significant surge in altcoins.
Firstly, the analyst suggests that a final capitulation event, typically characterized by violent fluctuations as seen with Solana in March 2020, may be necessary, or alternatively, a prolonged consolidation similar to what Zilliqa experienced could set the stage for a strong surge.
Sherpa also emphasizes that many altcoins are currently underperforming relative to BTC, indicating bearish sentiment. However, he remains bullish on altcoins in the long term, expecting a significant rebound despite uncertain timing and catalysts.
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Experts point out that historical patterns in the altcoin market provide insight into potential future scenarios. Sherpa advises caution for long-term cryptocurrency holders, noting that few cryptocurrencies are able to 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 suggests focusing on emerging narratives in the cryptocurrency space and highlights the evolution of projects such as SOL, Luna, and AVAX, as well as the updated equivalents of $FTM, $TIA, and NEON.
Despite current trends, the expert remains optimistic about the eventual revival of DeFi (decentralized finance), although uncertain about the timing.
Many altcoins will not reach their previous ATH
The situation is different since 2021, so I will talk about this. Researching DeFi 1.0 is important
$AAVE
$COMP
return to 2021
Background: In 2020, DeFi was just emerging; we experienced the DeFi summer. Uniswap and dexes became v. popular…
pic.twitter.com/gLIgYHPChe
-Altcoin Sherpa (@AltcoinSherpa)
June 21, 2024
