Is the End of 2024 a Good Time to Invest in Altcoins?

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The cryptocurrency market has been rejuvenated since the beginning of November and point toward a future in which the majority of lawmakers and regulators will be crypto-friendly.
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The cryptocurrency market has been rejuvenated since the beginning of November, as the results of the US presidential elections were positive for the marketplace and point toward a future in which the majority of lawmakers and regulators will be crypto-friendly. Such changes could usher in the beginning of a new era for digital assets, one that results in the foundation of a safer trading environment that sheds some of its volatility in favor of becoming a little more predictable so that investors are more confident in their estimations. Right now, the prices are rallying, so investors are looking for the best ways to consolidate their portfolios. 

As such, taking a more proactive approach to investing is once again popular among traders, with many focusing on altcoins to diversify their lists of holdings. The Toncoin price has, as a result, become a very important figure among traders who are attempting to branch out in order to maximize profitability and ensure their gains are as substantial as they can be. 

Toncoin 

As of December 20th, Toncoin was recording some corrections, many of them substantial enough to erase some of the gains made in November. As a result, the price reached the $5.14 level. The market sentiment remains largely positive in spite of this setback, and most investors are confident that it is still a great time to keep investing. Looking at the more extensive metrics, it becomes clear that Toncoin has been under a certain level of pressure throughout the last few months despite the developments and price appreciation. 

Some have put forward the idea that the ecosystem itself was not doing very well, as many of its tokens ended up crashing. Hamster Kombat has been one of the biggest disappointments, as the tap-to-earn game had only been listed a few months earlier. Since then, the valuation has dropped by more than 50% to $330 million. Several other crypto coins located in the ecosystem have kept underperforming, and Toncoin itself has been impacted to a certain degree. According to recent data, the number of active wallets on TON has dropped to 6.8 million, the lowest level recorded since September. 

Toncoin can be regarded as a microcosm of the larger altcoin market, as the entire ecosystem is dealing with stagnation at the moment. However, many investors are not concerned about this downswing, considering it to be a momentary and somewhat predictable shift. There are many who are likely to see it as a positive change overall, considering that they can buy the dip now and consolidate their portfolios before the prices start growing again and it becomes infeasible for many to keep purchasing. 

Slow Bleed 

The term “slow bleed” refers to a financial pattern in which the prices are moving on a downswing, but this typically happens in a slow, non-linear fashion. In this scenario, the values are likely to climb a little at some point, only to plunge even lower in the aftermath. A lot of value can be drained from the assets in this manner, and there are many who are concerned that this is precisely what’s going on with altcoins right now. Many analysts agree that the charts appear to indicate this type of market action and that, as a result, it’s not a good idea to bet very strongly on altcoins in the near future. 

Bitcoin has remained strong during this time, and as of December 12th, one BTC was worth over $101K. The more pessimistic outlooks indicate that the downswing could continue at least until the end of January, but some coins might record a certain level of gains during this timeframe. There are also some tokens that will keep consolidating for anywhere between two and seven weeks. Some researchers believe now is the best time for long bias, an investment strategy model focused on driving profits from elevated stock prices. 

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The traders who make use of this approach believe that there are specific sectors and areas that are undervalued and that are bound to experience an upward movement in the very near future. Others believe that community members shouldn’t let perfect become the enemy of good and strive to make the most out of every change and variation in the marketplace. There are many who think that this is the last correction before the price ends up growing significantly for the rest of the upcoming year. 

Data shows that most investors have shifted to short-term trading mentalities as a result of this cycle, and there’s a possibility that many will react impulsively to the news. Retail investors, in particular, are likely to “react with fear” and offload their assets far too quickly, which could potentially trigger a rather aggressive recovery. Although slow bleeds have sometimes been associated with crypto crashes that can be particularly devastating as they cause losses to accumulate, there’s no certainty that this is what is happening at the moment. There is no foolproof way to distinguish a downtrend from a full-blown bear market, so it is always essential to have a strong strategy in place to ensure your assets are safe and your financial goals become easier to achieve. 

FOMO 

The fear of missing is one of the central aspects of the crypto environment, as investors make a lot of choices based on their worries that they’re about to miss out on a stellar opportunity. Retail FOMO will be critical in the upcoming months, as it has enormous potential to attract fresh capital that will allow the prices to keep growing. This is particularly true for altcoins with a smaller market cap level, as they need more help than the more prominent players. As of the beginning of December, data showed heightened market interest, with the potential for an upcoming bull run in large altcoin marketplaces such as Ethereum. 

This trend is likely to spill over into smaller crypto markets, the same way Bitcoin influences all other digital coin ecosystems. 

Cryptocurrencies are known for their high volatility and fluctuations, so having a positive outcome when trading will always depend on the planning and research you’re willing to do before you start buying or selling. 

 

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