The post Top Reasons Why Altcoin Rally Has Not Yet Started: Analyst appeared on BitcoinEthereumNews.com.

In 2025, Bitcoin rebounded, but altcoins did not replicate the resurgence so far. Most assets continue to hover around major resistance levels. Analysts cited a number of structural problems that persist to hinder the overall altcoin rally. Speculative Platforms and Volatility Deter Altcoin Rally Among the key causes that analyst Ash Crypto mentioned was the rising adoption of speculative platforms, like Pump.fun. He argued that they pull liquidity out of the broader crypto landscape and hence slowing an altcoin rally. Notably, these platforms attract traders with short-term incentives and high-risk mechanics that often leave little liquidity for established or emerging altcoin projects. As capital flows into these schemes, the broader altcoin market loses stable investment sources, reducing its capacity for sustained growth. In addition, meme coins also contributed to the disruption. A vast number of these tokens are created and fail within 24 hours, typically using the “rug pull” strategy. These quick collapses reduced the confidence of retail investors in caution mode or whoquit the altcoin market altogether. Consequently, this action led to reduced buying pressure, even on more reliable assets, further slowing an altcoin rally. High FDV Listings Create Early Dumping Pressure Furthermore, another factor that suppressed altcoin rally 3.0 was the rise of high Fully Diluted Valuation (FDV) token listings. New utility-centric projects launch with inflated valuations, which in most cases favored early-stage investors or internal teams. When these tokens can be traded, insiders often dump much of their stake on the market, exerting downward price pressure at once. Furthermore, this sell-off not only influenced the value of the token but also undermined investor confidence. This early-stage dumping often affected retail traders, who joined after the listing. With an increasing number of projects following this high-FDV model, a general mistrust of new listings builds up, halting further investments.…

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Filed under: News - @ June 28, 2025 9:19 am