- CryptoQuant’s Axel Adler signals a potential altcoin rally with low exchange flows.
- Previous low-flow periods led to major altcoin price surges, hinting at another wave.
- Analyst predict a “GIGA altseason” ahead, offering traders a chance for massive returns.
CryptoQuant analyst Axel Adler Jr has spotted an important signal that signifies a new altcoin boom. As noted by Adler in a recent post on X, the average monthly altcoin exchange flow is now approximately $1.6 billion, compared to the annual average of $2.5 billion. This gradual decrease indicates that asset consolidation has begun, which could be relevant to a lead altseason rally in the future.
Adler plotted a chart to show a time frame in which the altcoin exchange flow declined below the distance of 1.6 billion. Such low-flow periods occurred during the early months of 2023, the second half of 2023, and in August and September 2024. In these instances, the declines were followed by significant price rallies of altcoins, so that a similar occurrence could happen in the future.
CryptoQuant Analyst Predicts Altcoin Accumulation Phase Ahead
CryptoQuant analyzes the current decline in altcoin exchange flow as a potential indication of a period of accumulation. Traders are likely to acquire assets during these meltdowns because they anticipate a change in market conditions. Such a configuration has historically resulted in spikes in alt-coin prices, as traders wait in anticipation to exploit the next cycle.
Axel Adler believes that the market is currently undergoing a transition into this phase. The statistics reveal that reduced exchange inflows are generally a calm signal before the storm. By stocking up, the traders are prepared for a potential rush.
Will History Repeat the 2021 Explosive Growth?
Analyst Crypto Patel noted that current market conditions mirror the 2021 altcoin boom, with the same warning signs flashing once again. Some altcoins recorded epic success in 2021, returning 10x, 50x, and even 100x their initial value. According to the analyst, the present arrangement has the potential to spur another round of explosive growth in the altcoin market.
Such a potential increase has drawn interest from numerous traders, with many gearing up for another shot at big profits. Since the 2021 altseason was still on the minds of many, those who missed the previous opportunity are eager to participate this time. According to analysts, the crucial thing is to strike early before the next big wave begins.
The potential for an altcoin boom is also in line with broader market trends. With the general market starting to display positive signs of recovery, investors are shifting back to riskier investments, such as altcoins. When exchange inflows are low, it is interpreted as traders preparing for the next major movement in the cryptocurrency market.
Related: U.S CPI Hits 2.4% in May as BTC Holds Steady, Altcoins Rally
Analyst Carl Moon has made bold predictions in the altcoin market. He believes that these relative conditions in the altcoin market signal the beginning of a Giga altseason, and significant profits await the future. The analyst states that altcoins will enter a growth cycle, and some of the assets can provide returns that may even surpass the most optimistic projections. This leaves many traders eager to generate 10 times their investment returns with the upcoming altseason.
Low exchange flows and optimistic market projections have sparked hope among crypto traders. With the current trend continuing, it may trigger a notable rally of altcoins, with certain assets gaining substantial profits. Analysts are closely monitoring the market, focusing on any signs of the next altseason approaching.
Traders are advised to be cautious and consider the possibility that the next altcoin wave may arrive sooner than anticipated. As market factors suggest that a rally is imminent, fast movers may reap substantial profits.
