Altcoin Season 2024: Market indicators point to a new cycle

The upcoming market phase 2024-2025 could prove to be a pivotal turning point for alternative cryptocurrencies. Several macroeconomic factors are currently converging to drive massive capital inflows into the sector. The US elections, a possible interest rate cut policy by the Federal Reserve, and projected liquidations of around $16 billion from the FTX fund between Q4 2024 and Q1 2025 create a favorable environment for an altcoin rally.

From a historical perspective, previous market cycles reveal patterns that could indicate future movements. Recognizing these signals and positioning your portfolio accordingly could benefit from significant value increases.

Altcoin Season 2024: The Technical Precursors

Indicators for an upcoming altcoin season are converging from multiple angles:

The Altcoin Season Index ratio has reached its lowest level since September – a classic signal for a potential turning point in market sentiment. Artificial intelligence and meme tokens are increasingly perceived as driving forces attracting institutional and private investor interest. The aggregated market capitalization is approaching a critical resistance level; a successful breakthrough could lead to exponential gains in altcoins.

This constellation suggests that the market may be on the verge of a strong altcoin phase.

Three Altcoins for Market Consolidation – Strategic Selection Criteria

AAVE: Liquidity protocols under pressure and opportunities

AAVE experienced a significant price decline during recent market consolidation: from $165.8 down to $141, representing a decrease of about 14.8%. This decline has established new lows and signals a shift in sentiment – away from buying at weaker prices and towards selling at highs.

The 90-day MVRV ratio increased to 2.36%, indicating that investors who have been positioned in the last three months have already realized gains. Such profit-taking phases can generate short-term selling pressure but also provide entry points for long-term investors. The current price is $166.41 with a 24h movement of -1.33%.

APT (Aptos): Layer-1 innovation with a proven founding team

Aptos presents itself as a Layer-1 blockchain prioritizing scalability, network reliability, and transaction security. The project was developed by Aptos Labs, led by former core members of Meta’s Diem project – indicating significant technical expertise.

The Move programming language forms the foundation for secure smart contracts. The implemented proof-of-stake consensus mechanism addresses classic issues such as high fees and network congestion that plagued Ethereum before its technological upgrade. With a focused approach on scalability and an experienced development team, Aptos has gained attention from developers and users. The current market values APT at $1.78.

SUI: User-centric blockchain architecture

Sui positions itself as a foundational blockchain platform with a focus on security, stability, and scalability. Its object-centric data model and use of the Move programming language aim to overcome structural inefficiencies of established blockchain systems.

The special feature: Sui prioritizes user experience through features like zkLogin, sponsored transactions, and temporary transaction blocks – technologies that make applications more accessible and intuitive. In the current market cycle, Sui is gaining relevance as the focus on user-friendliness and true scalability increases. The current price is $1.80.

Market Scenario and Position Building

Those preparing for the Altcoin Season 2024 should take position management seriously. The identified altcoins represent various blockchain approaches – from liquidity cores to scalable Layer-1s to user-centric architectures. A diversified approach to such projects could generate significant returns in the upcoming bull market.

Bitcoin is currently trading at $91.83K with a 24h movement of +1.08% and continues to serve as a market compass.