In the cryptocurrency market, where Bitcoin has been trading sideways for weeks, altcoins like Dogecoin and Cardano have been struggling to gain traction. However, a recent analysis suggests that this period of market surge for these iconic altcoins might be on the horizon.
Crypto trader “Astronomer” has shared insights, urging investors in Dogecoin and Cardano to remain patient. He points out that historically, the most substantial gains for altcoins come in the final year of a market cycle, specifically eyeing 2025. By drawing comparisons with previous cycles, he notes a similarity to 2017 over the more erratic 2021:
- 2017 Cycle: Altcoins, including Dogecoin and Cardano, lay dormant until late in the cycle, then experienced significant growth from March to November. Learn more about the 2017 crypto boom here.
- 2021 Cycle: An early spike was followed by a sharp decline, unlike the expected market surge at the end of the cycle.
The current price action of Bitcoin more closely resembles the gradual ascent seen in 2017, hinting at an impending market surge for altcoins like Dogecoin and Cardano.
Dogecoin, known for its community-driven meme status, has traditionally seen its value jump towards the end of market cycles. For a deep dive into Dogecoin’s history, check out our Dogecoin overview page. Similarly, Cardano, with its emphasis on a scalable blockchain, has followed this pattern of late-cycle gains. Learn about Cardano’s vision at our Cardano insights.
The anticipation was for Bitcoin’s dominance to diminish rapidly as seen in 2021, but the market seems to be retracing the steps of 2017, expecting a slower decline before a significant market surge. Ethereum, another giant in the crypto space, also had a gradual rise in 2017 before its explosive end, unlike the volatility of 2021.
This resemblance to 2017 could be due to market psychology, where investors expect historical patterns to repeat, combined with increased participation from institutional and governmental sectors, reminiscent of the retail surge in 2017. Read more about market psychology in cryptocurrencies.
Looking Forward:
Trader “Scient” describes the current market as choppy, with many altcoins losing ground while Bitcoin fluctuates between $91,000 and $108,000. This scenario is indicative of capital moving from weaker to stronger assets, with this shift happening faster due to market segmentation. Scient anticipates this volatility could dissipate by late April, signaling a potential market surge for altcoins like Dogecoin and Cardano. However, he advises against expecting a long-lasting altseason, suggesting instead to focus on large-cap assets while keeping meme coin investments minimal. For strategies on investing during market volatility, see our guide on crypto investment strategies.
Meanwhile, trader “arndxt” notes that Bitcoin’s current consolidation period is significantly shorter than historical ones, suggesting more chop might be ahead, potentially delaying the market surge for altcoins.
Conclusion:
With Dogecoin and Cardano at the forefront, the crypto community might be close to witnessing the end of this market stagnation, leading to an anticipated market surge. However, as with all cryptocurrency investments, caution, research, and strategic planning remain crucial. Stay updated with our latest crypto market analysis.
