Cryptocurrency experts and traders are questioning whether altcoin seasons—periods when alternative cryptocurrencies outperform Bitcoin—are fading. Historically, these seasons brought massive price gains for altcoins, but the market is now oversaturated. Analyst Ali Martinez noted there are over 36.4 million altcoins today, compared to just a few thousand during the 2017-2018 alt season. Economist Alex Krüger echoed this, stating that the oversupply of tokens is diluting market performance. He predicts future alt seasons will be much shorter, lasting only days or weeks.
The Altcoin Battle is Coming to An End?
The rise of low-quality tokens, like memecoins, has further weakened the altcoin market. Trader Ash Crypto criticized exchanges for listing these coins, which often lead to quick losses for retail investors. Meanwhile, Bitcoin has strengthened its position, with its market cap growing by 114% since 2021. In contrast, the total altcoin market cap remains below its peak.
Ki Young Ju of CryptoQuant believes only a few altcoins with real utility will survive long-term. Despite the challenges, some analysts remain optimistic. Michaël van de Poppe expects altcoins with actual use cases, like Ethereum, to attract institutional interest and lead the next rally. While some think altcoin seasons are over, others believe projects delivering real value will still thrive. As the market evolves, both investors and projects must adapt to survive.
Outlook as Cardano Struggles to Hit the $1 Mark
Yesterday, Cardano (ADA) was trading at $0.87 struggling to overcome the crucial barrier of $1.00. At this moment, the market appeared to be neutral, meaning that the volume of buyers was equal to that of the sellers. This brings the speculation of future trends into question. From a technical perspective, the confusion persists. When looking at the Relative Strength Index (RSI), it remained neutral, signaling no pressure from buyers or sellers. At the same time, the MACD issued a bearish crossover, which indicates that there could be downward momentum. The rise of the ADX indicates the conversion of the market to a more bearish sentiment, which shows that the current momentum is in fact shifting towards a more bearish stance.
The key price levels continued to be the focal point with resistances at $1.00 and $1.13 as well as supports at $0.87, $0.829 and $0.76. These levels are important in knowing what direction the price can go next. Short-term forecasts do point towards Cardano being able to rise to $1.01, which would be an increase of 15%, although more recent trends have shown an 18% drop in the last week. If these support levels do get broken, the prices may lower by 20%.
In the short term frame of 2025, the price of Cardano is expected to be between $0.97 and $4.86 with an average price of $2.78. This shows promise of significant growth potential, but it comes with a lot of volatility and risk. Technology upgrades, DeFi adoption, partnerships, as well as general market trends will impact its performance.
For investors, knowledge and caution are essential. No strategy will be perfect, but following certain techniques such as keeping an eye on the cutting-edge price points, practicing dollar-cost averaging, and remaining psychologically detached from the market will increase your probabilities of success.