The digital asset market is in correction mode, with most alternative cryptocurrencies experiencing daily declines. However, recent insights from market analysts suggest that this may be an opportune moment for traders to accumulate their positions.
According to a report by CryptoQuant analyst Darkfost, the Aggregated Altcoin Trading Volume for Stablecoin Quote Pairs chart indicates that the market is currently in a favorable buying zone. Darkfost suggests that implementing a Dollar-Cost Averaging (DCA) strategy for altcoins could be beneficial at this time.
Understanding the Altcoin Buying Zone
A DCA strategy entails consistently investing a predetermined amount in a cryptocurrency over a specific period, regardless of price fluctuations. This method aims to lessen the effects of market volatility by spreading investments over time.
With DCA, investors capitalize on lower prices by acquiring more cryptocurrencies when costs dip, while making fewer purchases during price spikes. This approach results in a lower overall average cost per unit.
According to Darkfost, the Aggregated Altcoin Trading Volume for Stablecoin Quote Pairs chart is instrumental in identifying optimal periods for buying or selling altcoins within a mid-term perspective. This metric juxtaposes the aggregated 30-day average trading volume of altcoins for stablecoin pairs against their yearly average.
Currently, the 30-day moving average is below the yearly average, further indicating that the metric is in a buying zone.
“It might be time to start a DCA strategy on altcoins,” Darkfost asserted.
The Prospects of an Altseason
Darkfost also noted that the last time the 30-day moving average approached its current levels was in September 2023, shortly after the conclusion of the bear market.
While this current phase could persist for weeks or even months, Darkfost insists that historical patterns have generally presented advantageous opportunities to implement a DCA strategy.
His analysis occurs in a backdrop where crypto investors remain hopeful for an altcoin season, despite the prevailing adverse macroeconomic conditions linked to tariff disputes. Many analysts expect that any forthcoming altseason will not mirror past experiences due to significant structural and regulatory shifts in the crypto landscape during this cycle.
CryptoQuant’s founder and CEO, Ki Young Ju, indicated less than two months ago that we might already be witnessing the beginning of an altseason; however, he argued that it would not involve a straightforward capital rotation from Bitcoin to altcoins. Instead, he claimed that the dynamics of this altseason would be determined by altcoin trading volumes.
Based on Darkfost’s analysis, it appears that altcoins may still experience substantial rallies in the months ahead as market conditions stabilize.
The original post, Altcoins in the Buying Zone? Analyst Says It’s Time to DCA, first appeared on CryptoPotato.
