Despite the historic strength, the start of October was anything but unexpected. Cryptocurrency enthusiasts have faced quite a bit of disruption this month, traditionally called “Uptober” due to its generally strong performance.
The unrest comes as geopolitical tensions between Israel and Iran escalate, which escalated dramatically following a severe missile attack on October 1. This is the second incident this year.
Analysts believe Altcoin season is getting closer.
These geopolitical disputes have injected uncertainty into global markets, impacting cryptocurrencies with liquidations of over $500 million. Nonetheless, some experts see the confusion as a problem ahead of altcoin season.
“Altcoin season isn’t going anywhere. The market is shaking. People are being tested. This is like any other test. It should pass,” said pseudonymous analyst Altcoin Buzz.
Read more: 11 Cryptocurrencies to Add to Your Portfolio Before Altcoin Season
In response to the market downturn, renowned cryptocurrency analyst Miles Deutscher outlined an opportunistic buying strategy during the downturn. The key, according to Deutscher, is to focus on former leaders.
“It’s actually quite simple because we just have a sample size of the market. The market has been giving us some insight into older coins that were pumped last week when things were really bullish, so it makes sense to pick the leaders from the most recent rally,” he explained.
Deutscher believes that meme coins and AI tokens have been at the forefront of the market over the past two weeks. So he expects these sectors could once again be among the strongest performers when the market bounces back from the downturn.
Specifically, Deutscher mentioned Dogwipart (WIF), Pepe (PEPE), POPCAT, and Mogcoin (MOG). He also pointed to Phantom (FTM), which has shown remarkable resilience during the current market downturn. Nonetheless, Deutscher continues to maintain positions in the stablecoin sector as a hedge against a potential further recession.
“The real alpha here is making sure you have a ready-made watchlist based on relative strength. If the market falls further, you will know exactly what to buy and will be mentally prepared rather than panicking or disparaging,” Deutscher said.
He recommends using a price aggregation platform to monitor daily top performers who will lead the way once the market uptrend resumes.
Read more: 7 Hot Meme Coins and Altcoins That Will Be Trending in 2024
Other analysts echo the sentiment that altcoin season is just around the corner.
“Altcoin season is closer than ever. Despite the recent standoff in the Middle East, Uptober is still Uptober. I started exchanging more Solana (SOL) and Ethereum (ETH) for memes and promising alternatives that I expected would yield 5-10x returns,” said cryptocurrency researcher 0xFinish.
In fact, by preparing a strategic watch list and understanding the relative strengths of various altcoins, investors can effectively take advantage of a potential market rebound. As always, vigilance and preparation are key to capitalizing on opportunities during volatile times.
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