Market data indicates the beginning of altcoin season, but there are warning signs. This was stated by Santiment specialists.
Bitcoin has reached a new all-time high above $118,000. Against this backdrop, most leading cryptocurrencies have outperformed the flagship in price dynamics over the past seven days.
Data: CoinGecko.
The largest Ethereum wallets (holding 10,000 ETH or more) have collectively accumulated 75.74% of the coin’s total supply. This is the highest level of concentration among whales since May 2017 and is considered a “strong bullish signal,” according to the company’s experts.
The number of XRP wallets holding more than 1 million coins has reached an all-time high of 2,743. The total amount of cryptocurrency held by these wallets has also increased. Both trends are considered a “very positive sign” for Ripple’s asset, Santiment emphasized.
According to analysts, the altseason will continue as long as Bitcoin holds above the key psychological level of $110,000. In such a scenario, traders feel comfortable reallocating profits from the growth of digital gold into other coins, they added.
Experts advised exercising caution.
One of the warning signs is the MVRV metric for Bitcoin. The market value to realized value ratio has already exceeded the level recorded in May during the previous ATH, which was followed by a correction.
Data: Santiment.
Santiment also highlighted the weekly growth leadership of the meme coin segment — up 17%. This potentially indicates the final stage of the market rally, according to experts.
“When speculative assets are leading the market, it may suggest that greed is peaking,” they noted.
For Ethereum, a concerning signal is the extremely optimistic sentiment surrounding the asset. Typically, this indicates the approach of a short-term price peak, Santiment stated.
The altseason index from CoinMarketCap stands at 27. This figure suggests that traders still prefer Bitcoin.
Data: CoinMarketCap.
The dominance of the leading cryptocurrency stands at 62.5%. Analyst Matthew Hyland noted that despite this, altcoins have shown impressive growth. However, the real rally will begin once Bitcoin’s dominance drops to 45%, he believes.
It is worth noting that Blockstream co-founder and CEO Adam Back called the boom in corporate Bitcoin treasuries a profitable alternative to altseason.
