With a number of cryptocurrencies such as#BTCand meme coins #SUI,#GOATand#MEOWhitting new highs, many altcoins are still holding at levels comparable to Bitcoin's early 2023 positions. This means that many assets are still waiting for the "third wave" of growth that is characteristic of the current market cycle.
Key aspects of the current market situation:
Pullback risk. Current indicators suggest a pullback is likely, especially for altcoins at their local highs. In such a scenario, buying altcoins at current values may only be promising in the long term, and if investors choose to exclusively trade on spot. In this case, possible drawdowns of 20%-40% at first before potential subsequent profits, which could amount to +400% or more in the alt season.
Breakeven positions. Many large altcoin holders are on the verge of breaking even after holding assets for a long time, which creates the risk of a temporary price decline. After the exit, such investors often return, buying assets again, sometimes at less favorable rates. The most patient traders can wait for a potential decline to support levels or key values, such as Fibonacci levels or EMA tests, to improve their positions.
Closest to new highs:
Among the altcoins closest to reaching all-time highs are #BNB , #SOL , #TAO , and #PEPE , which only need 12-35% growth. Next up is #ETH , which needs 51% growth to reach a new ATH. If Ethereum reaches new highs, it could trigger further growth among other altcoins, creating a "domino effect" for the crypto market.
