Crypto

Altcoin Season Incoming? Analyst Says Buckle Up, But Beware Meme Coin Mania (DOGE, SHIB, BONK on Notice)

Buckle up, crypto enthusiasts, because an Altcoin season could be right around the corner, according to a popular analyst known as House of Crypto. This prediction is based on a technical indicator that has historically preceded altcoin booms – a bearish MACD crossover in Bitcoin’s dominance.

House of Crypto isn’t the only one noticing this pattern. The analyst points out that the same crossover happened in 2017, 2020, and 2021, all of which ushered in significant altcoin seasons. With the crossover happening again now, “we are about to fall into another altcoins season,” he declared.

But before you jump in with both feet, the analyst warns of a three-phase cycle crypto goes through before a major breakout. The first phase is a price slump that discourages casual investors. This is followed by a brief upswing fueled by optimism, attracting retail back in. However, the third phase – the shakeout – throws a curveball. A sharp dip sends shivers down the spines of less committed investors, allowing big players to accumulate tokens at bargain prices.

House of Crypto believes we’re nearing the end of this shakeout phase, paving the way for a massive altcoin bull run. He highlights BeamX, Render, SingularityNET’s AGIX, and Arweave as potential high performers, all of which have seen dips recently, presenting a possible buying opportunity.

However, the analyst throws shade on some popular altcoins, urging investors to steer clear of XRP, XTC, XLM, and QNT, claiming they lack the “signs of strength” needed to thrive.

The article also throws a bucket of cold water on meme coins, which have typically been big winners during altcoin seasons. House of Crypto warns that investing in 99% of meme coins could be a risky proposition. While a few might ride the altcoin wave to new highs, the analyst compares the current meme coin craze to the 2022 NFT frenzy, where celebrity endorsements inflated prices that later came crashing down.

Also Read: Crypto Carnage: Altcoins Bleed Double Digits (But Why?) & Bitcoin Miners Strike Gold!

The recent price action seems to support this view. While most cryptos have seen gains in the last day, they’re still down over 10% for the week. Meme coins like DOGE, SHIB, and Dogwifhat have taken a beating, losing around 15%, while others like BONK have plunged over 20%.

So, if House of Crypto’s prediction holds weight, investors might want to focus on well-established altcoins with strong fundamentals, especially those in the AI space, and avoid the allure of the latest meme coin trend. Only time will tell if this altcoin season materializes, but one thing’s for sure – staying informed and making calculated decisions is crucial for navigating the ever-volatile crypto market.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses

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