Altcoins
Altcoin season is approaching! Here are Raoul Pal’s best cryptocurrency picks
In a recent Savvy Finance video analysis, analysts decoded Real Vision founder and CEO Raoul Pal knowledge on the upcoming altcoin season. Pal highlighted the phases of the market, referring to the current “drill zone” as being nearly over and anticipating the transition to the “banana zone,” where significant market activity is expected. He predicted a 10x increase in the market cap of altcoins, excluding Ethereum, mirroring the trends of the 2016-2017 cryptocurrency bull market.
Read on to find out more.
Ready for an “alternative” adventure?
Savvy Finance has highlighted that a major altcoin season, known for its significant price increases and market excitement, is just around the corner. Crypto analysts known as Moustache revealed that the 3W Gaussian channel changed from red to green, indicating that a strong altcoin season be there soon.
This is the period when maximum altcoins will gain, as this is the powerful transition that will happen after 2020. Pal predicts that Ethereum and especially Solana will perform better than Bitcoin, with Solana potentially seeing the most substantial gains over the next market cycle.
The “Banana” area of Pal
According to Raoul Pal, we are at the dawn of the “banana zone”, a promising phase for altcoins, with Solana likely to lead the way. He points out that while these opportunities take time to develop, they can offer huge rewards. With the elections happening this year, things will change around the fourth quarter when the market will turn bullish.
Additionally, he noted that the “biggest game” is altcoin season or the “Banana Zone,” referring to the huge altcoin rallies and parabolic price charts. Bitcoin still dominates with a 52% market share. For altcoin season to begin, that number needs to drop to the average level of 40%, as it did in the last cycle.
Ethereum vs. Solana: Who will lead?
Pal predicts that Ethereum will outperform Bitcoin and Solana will outperform both. He pointed to Solana’s strong chart patterns and low volatility as indicators of high potential gains. Pal’s estimates suggest that Solana will be the top performer in the next cycle. While showing his enthusiasm for Solana, he also said that he has not given up on Bitcoin and is willing to buy the dip for Q4 gains.
The ability to get Ethereum approval and Solana ETF This could lead to an increase in demand for these altcoins. Investment managers like VanEck and 21Shares have filed applications for such ETFs, which, if approved, could attract new capital to the market.
Tips for Investors
According to Pal, the best way to understand how markets work is to go through the Banana Zone and beyond. Through disciplined portfolio management techniques, he advises investors to be patient, take a long-term view and be prudent with their money.
Pal cautions investors against making hasty judgments based on hype. He recommends avoiding leverage, investing primarily in the three to five coins with the highest market caps, and allocating 10% to high-risk altcoins.
Don’t get FOMO when the altcoin party starts! Dive in now!
Read also : Q2 2024 Crypto Market Report: Solana and Litecoin Attract Combined Inflows of $3 Million Last Week