A renowned crypto analyst predicts that altcoins are poised for a significant rally before the current crypto cycle concludes.
Triggering Events
The analyst, Altcoin Sherpa, believes one of two events must occur before a major altcoin rally:
- Final Capitulation: A sharp decline that shakes out weak hands, similar to Solana’s drop in December 2020.
- Consolidation Period: A prolonged period of sideways movement, as seen with Zilliqa.
Historical Patterns
Sherpa also draws insights from historical data to suggest how the next altcoin rally might unfold:
- Don’t hold altcoins for the long term, as few outperform Bitcoin (BTC) and Ethereum (ETH).
- Narratives tend to repeat, but with different players. For example, layer-1 altcoins like SOL, LUNA, and AVAX in 2021 may be replaced by SEI, TIA, and NEON in the future.
- Memecoins and sectors that are currently undervalued may see a resurgence.
- DeFi (decentralized finance) is expected to make a comeback, but the timing is uncertain.
