Altcoins
Dogecoin, Pepe and Shiba Inu Rally Raises Hopes for Impending Altcoin Season: “…Will Start to Outperform Right Now”
Like the same pieces like Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB), analysts are predicting a potential “altcoin season,” hinting at a shift in cryptocurrency market dynamics.
What happened: Although Bitcoin has outperformed smaller tokens, analysts believe recent market movements suggest this trend could soon change, CoinDesk reported.
Analysts at K33 Research noted that historically, altcoins began to outperform around this time. The “tremendous” rally in coins like Dogecoin and Shiba Inu could be a “possible early sign” of an altcoin season to come, they added.
“Judging by history, altcoins will start to outperform right now,” K33 wrote.
They pointed out that the market capitalization of Bitcoin has doubled compared to the total value of all cryptocurrencies excluding Bitcoin and Ethereum (CRYPTO: ETH) since the market bottom of November 2022. This pattern reflects the scenario of late 2020, when altcoins began to catch up with Bitcoin.
The recent surge in meme coins including Dogecoin and Shiba Inu, which saw gains of 40-50% this week, and new entrants like Pepe (CRYPTO: PEPE), Bonk (CRYPTO: BONK), and dog hat (CRYPTO: WIF), which has doubled in price or more, could be an early indicator of the impending altcoin season, according to K33.
See also: This trader turned $2,708 into $3.25 million with Trump-linked MAGA Memecoin
Founder of Cubic Analytics Caleb Franzen thinks After the Bitcoin and Ethereum rallies, “shitcoins” will increase.
“I think market psychology will repeat itself the same way it always has. Bitcoin starts and stays strong. Then ETH participates significantly. Then shitcoins ride the wave.”
#Bitcoin just completed the highest monthly close since October 21, but it’s getting even better and more bullish… The 36-month Williams %R oscillator just closed above the overbought level for the 4th time in the #BTC returns after previous signals:
• February 2013 = +3,900% in 9 months
•… pic.twitter.com/MvVLObNezV— Caleb Franzen (@CalebFranzen) March 1, 2024
However, K33 warned that planning for the altcoin season is risky as the landscape has changed with the introduction of Bitcoin ETFs. There is no guarantee that funds flowing into Bitcoin will eventually trickle down to smaller assets.
Swissblock analysts also suggested that an altcoin season could be imminent, with the key signal being ETH crossing the $3,500 price threshold.
Why is this important: A $100 investment in Dogecoin at its lowest price in May 2015 would be worth an incredible $1.5 million today, according to an analysis by Benzinga. This followed a 10% increase in the price of Dogecoin on the same day.
On the same day, a cryptocurrency analyst, Sherpa Altcoin, shared an optimistic outlook for Dogecoin and Shiba Inu, predicting an uptrend after long periods of price consolidation. However, he cautioned that it would be unrealistic at this point to expect all-time highs for these coins due to their established market capitalizations.
Dogecoin-related coins were on the list of top gainers among the top 100 cryptocurrencies by market cap, with the total market cap of the top 100 meme cryptocurrencies seeing a 12.8% jump in the last 24 hours.
Read next: Shiba Inu “Dogecoin Killer” explodes for 60% weekly gain: This indicator shows a golden cross
Disclaimer: This content was partially produced with the assistance of Benzinga Neuro and was edited and published by Benzinga editors.
Photo by Kanchanara on Unsplash