Altcoins
Top reasons why now is not a good time to buy Altcoins
Banter Crypto Analyst recently spoke about the current state of altcoins and meme coins, urging investors to take a cautious but strategic approach during times of market volatility. In a recent segment, Crypto Banter explained the importance of not simply following the herd mentality of buying assets that have seen the fastest recovery.
Altcoin Alert: Don’t Get Burned by the Hype!
Crypto Banter predicts continued market volatility in the near future, warning against assuming that the crypto market will immediately rebound to all-time highs. First, he advises against blindly following rapidly rebounding assets without considering how much their prices have fallen. Instead, he suggested looking at both the price and the percentage decline from the peak to gauge relative strength.
For example, a token like Rune could have fallen 62.57% but only recovered 31%, indicating potential undervaluation despite the 50% net decline. This approach helps investors identify tokens with true resilience and long-term potential, rather than those that simply bounce back quickly without strong fundamentals.
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He cited Ando as an example. It fell 46% from its peak, but has recovered slightly, now down just over 6.67%. This shows which tokens are strong and which ones bounce back quickly. He also mentioned buying Telegram (TONNE), which only fell 9%, suggesting it could take the lead in the next cycle.
The analyst also discussed Celestia and presented a framework focused on two main aspects. First, it is crucial to evaluate how a token has performed since its peak. Celestia, for example, fell from $22 to $6, a staggering 65% drop. Even though it has rebounded 30%, it remains 52% below its peak.
This explains the importance of looking for resilient, high-quality yet affordable tokens. Tokens like Rune and Arweave meet this criteria, offering substantial value despite price drops of 41% and 40%, respectively.
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