Reporting by Coin World:
Altcoins have experienced a significant surge, with top-ranking altcoins achieving double-digit growth. However, despite this, meme coins still lead the way. Among the best performers of the week, 60% are altcoins, indicating a clear market shift. Unlike previous cycles, altcoins are outperforming meme coins. Cardano [ADA] has seen a weekly increase of over 25%. However, as these coins approach historical resistance levels—some even surpassing them—uncertainty surrounding potential corrections is mounting. In fact, just recently, a wallet holder spent 235 ETH to purchase 33.35 million Dogecoins.
While the weekend is expected to see altcoins rise on the back of weak Bitcoin hand sell-offs, there is a possibility that the market may repeat patterns from previous cycles. The altcoin season might take longer to commence. In context, BTC peaking is a key precursor to triggering an altcoin season or a meme coin supercycle. The reasoning is simple—when weaker groups exit the market, fearing a potential pullback as Bitcoin nears a critical risk area, substantial liquidity flows into high market cap coins.
For example, DOGE significantly surged from mid to late October after an 8-month consolidation, despite Bitcoin experiencing a noticeable pullback during the same period. Meanwhile, Ethereum, the world’s largest altcoin, showed flat performance in the same timeframe, marking the first time ETH failed to gain traction as BTC hit resistance. However, unlike before, ETH increased by over 16% weekly. This robust rebound has increased the chances of an altcoin season, with its market cap growing by 3% to reach $351 billion, providing relief to over 3 million currently profitable addresses.
However, if wallet holders—who sold $500,000 worth of ETH for DOGE as ETH approached the critical psychological level of $3,000—continue this trend, it could prompt more holders to follow suit. Consequently, the altcoin season might be delayed, with liquidity possibly flowing into meme coins. This would trigger a meme coin cycle.
A meme coin cycle seems more likely. DOGE’s weekly increase of over 20% has surpassed altcoins, but there seems to be more behind this rebound. With Elon Musk’s continued support for Dogecoin and his growing influence in the political arena, his backing has undoubtedly paved the way for DOGE’s surge. Following the election results, DOGE’s major shareholders have accumulated over $800 million. This is evidenced by the recent price spike, nearing the $0.20 mark.
Is your portfolio in the green? Check the Dogecoin Profit Calculator. As a traditional meme coin, Dogecoin must lead in safeguarding other meme coins. Notably, major meme coins based on Solana still lag behind. The market may change next week. Given the current market dynamics, meme coins currently remain ahead of altcoins. However, in the long run, this situation may change, especially as analysts predict BTC might break through $80,000 next.