Is This the Time for Traders to Focus on Altcoins?

• Bitcoin dominance drops to 55%, signaling the start of an emerging altcoin season.
• Ripple (XRP) and Tron (TRX) lead gains, with the alt market hitting new all-time highs.
• Analysts stress necessary disciplined strategies amid volatile altcoin cycle developments.

The cryptocurrency market is showing clear signals of an emerging altcoin season, with Bitcoin dominance (BTC.D) declining from 61% to 55%. The altcoin market has progressed beyond its initial phase, with large-cap cryptocurrencies leading the charge.

Crypto analyst Pepesso highlighted in a recent tweet thread that crypto is all about cycles. He highlighted how the funds flow from BTC to ETH and then to high caps, mid caps and low caps. According to his analysis, the first phase where money flows into Bitcoin and causes a price surge is over. The market is now in the second phase, where money is starting to flow into large caps.

XRP’s breakthrough above $2.82 from $1.37 serves as a notable indicator, while projections suggest Chainlink (LINK) could reach $30 and Dogecoin (DOGE) might achieve the $1 milestone. Analyst Miles Deutscher provides valuable insight into altcoin season dynamics, noting that market sectors tend to outperform sequentially.

Miles emphasizes that tokens showing resilience during market corrections often lead to subsequent recoveries. This offers traders a framework for identifying potential opportunities. In addition, the alts Cap (total 3) has hit a new ATH. 

Market analyst Stockmoney Lizards warns of increasing speculation in lower-quality assets as the altcoin season progresses. He also stressed the importance of maintaining disciplined trading strategies. Stockmoney Lizards stated that success in this market requires emotional resilience to weather both major drawdowns (-30% to -70%) and dramatic upswings (+100% to +500%).

The analyst also recommends establishing clear targets and timelines while maintaining realistic expectations. Key technical indicators like the Relative Strength Index (RSI) can help identify entry points during accumulation phases. According to Stockmoney Lizards, signs of market cycle peaks include mainstream media coverage of speculative tokens, double tops with declining volume on higher timeframes, and monthly RSI readings above 90.

In the last 24 hours, altcoins like Tron (TRX) have exhibited an 80% pump in price even amidst the overall muted performance of other coins. TRX pumped from a seven-day low of $0.1972 to as high as $0.426. Other altcoins are also showing slow price momentum with single-digit price surges.

As the market is entering the early stages of an altcoin season, traders should focus on establishing strong risk management strategies rather than pursuing quick gains. The current market structure suggests this is not merely the end of 2024’s trading season but rather the beginning of a broader altcoin cycle.

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