Altcoins
Altcoin season is coming! Here are Raoul Pal’s top cryptocurrency picks
In a recent video analysis from Savvy Finance, 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 “boring zone” as being almost 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 has shifted from red to green, indicating that a strong altcoin season be there soon.
This is the period when altcoins will gain the most, as it is the powerful transition that is happening after 2020. Pal predicts that Ethereum and in particular 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 on the cusp of the “banana zone,” a promising phase for altcoins, with Solana expected to lead the way. He points out that while these opportunities take time to develop, they can offer huge rewards. With elections coming this year, things will change around Q4, when the market turns 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 Be the Leader?
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 upcoming 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 let the fear of missing out get you carried away when the altcoin party begins! Dive in now!
Read also : Cryptocurrency Market Report Q2 2024: Solana and Litecoin Attract Combined Inflows of $3 Million Last Week