Altcoins
Top Reasons Why Now Is Not a Good Time to Buy Altcoins
Crypto Analyst Banter recently discussed 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 be fooled by the hype!
Crypto Banter predicts continued market volatility in the near future, warning against assuming that the cryptocurrency market will immediately rebound to all-time highs. First, he advised against blindly following assets that rebound quickly without considering the magnitude of their price decline. 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 a net decline of 50%. This approach helps investors identify tokens with real resilience and long-term potential, rather than those that simply bounce back quickly without strong fundamentals.
Learn more: Cryptocurrency Market Crash: Best Strategies to Profit 10X from This Downtrend
He cited Ando as an example. It fell 46% from its peak, but recovered slightly, down only 6.67%. This shows which tokens are strong and which ones are rebounding quickly. He also mentioned buying Telegram (TONNE), which fell only 9%, suggesting it could lead the next cycle.
The analyst also discussed Celestia and presented a framework that focuses on two main aspects. First, it is essential to evaluate the performance of a token since its peak. Celestia, for example, fell from $22 to $6, a staggering 65% drop. Although it has rebounded 30%, it is still 52% below its peak.
This explains the importance of looking for resilient and high-quality, yet affordable tokens. Tokens like Rune and Arweave fit this criteria, offering substantial value despite price drops of 41% and 40%, respectively.
Also see: Report Reveals Top 5 Crypto Whales Hold $3.5 Billion