The promise of altcoin season has become an important focus for cryptocurrency enthusiasts and investors as it brings major changes to the market. Technically, this marks the beginning of a massive capital rotation from Bitcoin (BTC) to altcoins like Solana (SOL).
Currently, well-known indices point to the beginning of the altcoin season, which may bring new opportunities for investors in the cryptocurrency market.
The start of altcoin season
The altcoin season index recently hit a high of 76 out of 100. Therefore, the critical point of 75 points has been exceeded. This rise marks the official start of the long-awaited altcoin season.
Historically, altcoin season is characterized by a period in which 75% of the top 50 altcoins outperform Bitcoin for 90 days. This phenomenon was last observed between late August and September 2022, a period in which various altcoins achieved notable gains.
Read more: What is altcoin season? Comprehensive Guide
The current market scenario reflects these conditions, with altcoins such as Ordi (ORDI), Sei (SEI), Injective (INJ), Solana (SOL), etc. significantly outperforming BTC.
In particular, Solana’s rise is noteworthy. Known for its high throughput and low transaction costs, the blockchain’s native token SOL has seen a remarkable 6.7% price increase over the past week. It is currently trading at $95.5.
This surge is highlighted by the bullish pattern seen on the 4-hour chart. According to Ali Martinez, head of global news at BeInCrypto, Solana formed a bullish flag within this period, suggesting a possible breakout if the four-hour close exceeds $106.
If SOL breaks this resistance, it could pave the way for a surge towards the $150 area.
“Solana shows a bull flag emerging on the 4-hour chart. A sustained close above $106 could trigger a 47% rally that would push SOL into the $150-$165 price range,” Martinez said.
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The broader context of this altcoin season also includes significant performances from other cryptocurrencies. For example, ORDI and SEI achieved impressive returns of 2,067% and 558.5%, respectively.
Ethereum (ETH) also increased its market dominance, currently occupying 18% of CoinMarketCap and 17.2% of CoinGecko, while Bitcoin accounted for 49.8% and 47.5%, respectively. These changes indicate growing interest in altcoins and challenging Bitcoin’s long-standing dominance in the market.
Read more: 13 Best Altcoins to Invest in January 2024
The impact of altcoin season is not limited to price movements. This is a hot topic on social media and even in the trading community. An amazing example of this is a trader who shrewdly traded Mytheria (MYRA), turning 3 SOL into 1,703 SOL in just one day.
This story of rapid rise further adds to the enthusiasm surrounding altcoins, especially Solana.
However, caution is always required in the volatile cryptocurrency market. Current trends indicate a bullish outlook for altcoins like Solana, but the market is unpredictable. Whether this momentum will continue and lead to new heights remains a topic of intense interest and speculation in the cryptocurrency community.
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