History Says Buy, But Market Risks High
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A chart shows potentially favorable phase for altcoin DCA strategy The 30-day moving average of altcoin prices has fallen below the annual average The market remains very unpredictable with the current trade war between USA and China Now might be a good time to start accumulating altcoins, some traders are saying. CryptoQuant shared a chart earlier today looking at altcoin trading volume (vs stablecoins), possibly showing the market entering a period well-suited for Dollar-Cost Averaging (DCA) plans. And according to analyst Darkfos, the 30-day moving average of altcoin prices has fallen below the annual average. This pattern was last observed in September 2023, before a large market rally. What Does This Signal Suggest for Dollar-Cost Averaging (DCA) Altcoins? The technical indicator implies that altcoins are priced low compared to their longer trends, hinting at a potential entry spot for buyers. DCA involves investing set amounts regularly, whatever the price, often used to lessen risks from market swings. Such market periods can last weeks or months. However, this is all well and done, but the broader market context remains a complicated matter. Recent geopolitical tensions, mainly the trade war between the US and China adds a big level of uncertainty. That, and the tariffs Trump announced (then paused) on a huge number of other countries, have already hit the financial markets hard, crypto included. For instance, Bitcoin even dropped below $75k at one point, and the most well-known altcoin Ethereum is down 15% in the last seven days. As such, with so much uncertainty looming over, it’s hard to predict anything, and even harder to predict the impact of different news. Not All Altcoins Equal: How ETH, ADA, SOL Performance Differs Still, despite all the bad news lately, altcoins have been showing signs of resilience. Solana, for one, is doing relatively…
Filed under: News - @ April 11, 2025 3:15 pm