“Altcoin FOMO” is Taking off in the Market, Can Traders Expect Alt-Season Soon?
The crypto market has enjoyed a modest rally since the weekend, with Bitcoin price closing above $17k in two consecutive days. Popular altcoins like Ethereum (ETH), Cardano (ADA), and Solana (SOL) have led in recent gains despite negative market sentiments that have persisted since FTX and Alameda’s implosion.
According to our latest crypto price oracles Solana (SOL), and Cardano (ADA) have gained approximately 43 percent and 25 percent respectively in the past few days. With Ethereum (ETH) and BNB up about 9 percent and 12 percent respectively in the past seven days, market strategists believe traders are bound to FOMO in the coming weeks.
As such, crypto prices may push higher before forming an imminent top according to analysts. Furthermore, the FTX and Alameda’s shockwaves are not over yet with top firms like Gemini and Digital Currency Group severely affected, whereby the latter is at the precipice of bankruptcy.
Closer Look at Crypto Market Outlook
Notably, crypto insight company Santiment has warned that the recent altcoin rally may not be sustainable as traders try to FOMO in. According to the research firm, short-term crypto gains are closely followed by sustained bear markets as traders rush to take profits.
Nonetheless, Santiment noted that the altcoin rally is heavily dependent on Bitcoin’s next move following the recent $17k breakout.
“We haven’t had many opportunities to point it out over the past year, but when we see altcoins being mentioned as prices are rising, it usually means the crowd has recognized that altcoins are pumping and are trying to FOMO in. The result is usually that a top forms… at least until the crowd starts doubting that altcoins can rise again,” Santiment noted.
The crypto market has regained over $88 billion in the past few days following the FTX capitulation. According to market data provided by Coingecko, the total crypto market capitalization stands at approximately $887 billion.
The largest gainers in the crypto ecosystems include the Solana network with most of its projects including BONK, and Serum (SRM) up over 50 percent in the past seven days.
Notably, the Solana ecosystem’s market cap today is $11.2 Billion, up approximately 10.1 percent in the last 24 hours.
The other top performer in the crypto sector, in the past few days, is the sports industry with Chiliz (CHZ) and Flow (FLOW) up about 20 percent and 18 percent respectively in the last seven days.