In a recent analysis, popular cryptocurrency analyst Altcoin Sherpa shared an optimistic outlook for altcoin investors. Through his social media platform, he suggested that altcoins might experience a significant rise, drawing parallels to the rally observed from November 2023 to March 2024.
Bitcoin’s Role in Upcoming Altcoin Rally?
Altcoin Sherpa anticipates that the next altcoin surge could commence in either December this year or January 2025. He attributes this potential rally to Bitcoin hitting an all-time high and subsequently cooling off, setting the stage for altcoins to gain momentum. “I think this rally could be triggered by Bitcoin reaching an all-time high. This could happen in December or January, and then altcoins could gain strength,” he stated.
Despite his positive forecast, Altcoin Sherpa cautioned that this rally might not be as extensive as past altcoin seasons. “A real altcoin season like January 2021 may not happen for years. However, altcoins will largely recover, with only a few standout exceptions,” he noted.
Which Altcoins Are Considered Safe?
The analyst also highlighted specific altcoins he currently deems as offering “safe” trading opportunities. Among these are the decentralized finance (DeFi) protocol Aave (AAVE), XRP, and Layer-1 altcoins BNB (BNB) and Tron (TRX). He further mentioned several newer projects such as Network io.net (IO), BounceBit (BB), and Blast (BLAST), although he classified these as not very safe but potentially lucrative if Bitcoin remains strong.
Key Considerations for Investors
Investor Takeaways:
- Monitor Bitcoin for potential all-time highs as it could initiate an altcoin rally.
- Consider altcoins like Aave, XRP, BNB, and Tron for relatively safer investments.
- Newer projects such as Network io.net, BounceBit, and Blast may offer high returns if Bitcoin maintains strength.
- High-risk memecoins like Popcat, dogwifhat, and Pepe might yield significant gains but come with increased risks.
In conclusion, while Altcoin Sherpa painted a hopeful picture for altcoin enthusiasts, he advised caution, noting that the anticipated rally might not replicate previous altcoin seasons. Investors should carefully consider both established and emerging altcoins, weighing their potential rewards against the inherent risks.