The total market capitalization of altcoins must rise above $1.1 trillion for the ‘euphoria’ stage to commence; until then, the market will remain ‘unstable,’ according to trader DaanCrypto.
All you need for $ALTS:
Currently, the altcoin total market cap is consolidating beneath its all time high, after shortly breaking it and rejecting.
As long as this trades between ~$840B & ~$1.1T I think it will be choppy.
The Euphoria/Mania Phase should begin upon breaching… pic.twitter.com/ybqmU88lFu
— Daan Crypto Trades (@DaanCrypto) December 28, 2024
According to his observations, the TOTAL3 index is currently consolidating below its all-time high from 2021.
As per TradingView, at the time of writing, the figure stands at approximately $960 billion — 17% short of the ATH of $1.13 trillion. Earlier in December, TOTAL3 tested peak values but quickly retreated.
“As long as the figure remains between $840 billion and ~$1.1 trillion, I expect instability. […] If it were to fall below $800 billion, I would be a bit cautious. Technically, it could still be a higher low, but it doesn’t fit perfectly into the overall structure,” the expert added.
Daniel Cheung, co-founder of Syncracy Capital, attributed the slow movement of altcoins to traders’ short-term plans.
Everyone decided they were George Soros all of a sudden this cycle and constantly monitoring hourly charts to time entries / exits and playing with leverage.
That has been the biggest driver of charts failing to breakout as fast as prior cycles and many freak out charts failing… https://t.co/9EgyPsUqVV
— Daniel Cheung (@HighCoinviction) December 28, 2024
“In this cycle, everyone suddenly thought they were George Soros and constantly monitored hourly charts to time entries/exits and play with leverage,” he wrote.
Earlier, analyst and MN Trading founder Michaël van de Poppe predicted Ethereum would outperform Bitcoin in January, providing a boost for altcoins.
Back in December, Felix Hartmann, managing partner of investment firm Hartmann Capital, stated that altseason had “already run its course.”