Analysis: Top 5 Altcoins from the 2021 Bull Run Set to Explode This Cycle
The cryptocurrency market is currently experiencing a fresh interest in altcoins as Bitcoin faces resistance on its path to the $100,000 target. This phenomenon is reminiscent of the 2021 bull run, during which altcoins delivered massive gains to traders when Bitcoin paused its rally. In this article, we will explore the top 5 altcoins from the 2021 bull run that are showing signs of gearing up for an explosive move this cycle.
Table of Contents
- Bitcoin Dominance Dwindles, Altcoin Gains Likely
- Is it Altcoin Season?
- Altcoins from the 2021 Bull Run Eye Massive Gains
- Top 5 Altcoin Targets This Cycle
Bitcoin Dominance Dwindles, Altcoin Gains Likely
Bitcoin’s dominance peaked at 61.53% on November 18, 2024, but has since dwindled to 58.97% on November 26, 2024. This decline in dominance typically paves the way for capital rotation into altcoins and a likely comeback in the altcoin season.
When Bitcoin dominance dropped to 40% during the 2021 bull run, altcoins started rallying, yielding nearly double-digit gains for traders. A similar occurrence could push altcoin prices higher during this bull run.
Is it Altcoin Season?
The altcoin season index on Blockchaincenter.net shows a steady climb in the scale that measures whether it is “alt season.” When 75% of the top 50 altcoins outperform Bitcoin in a 90-day timeframe, it confirms an alt season, excluding stablecoins and asset-backed tokens.
The chart shows an increase in the index, up from 6 on November 5 to 57 at the time of writing. This indicates a steady progress towards an alt season, and traders can begin preparing by adding relevant altcoin tokens to their portfolio.
Altcoins from the 2021 Bull Run Eye Massive Gains
During the 2021 bull run, altcoins like Avalanche (AVAX), Polkadot (DOT), Fantom (FTM), Internet Computer Protocol (ICP), and Sui Protocol (SUI) could make a return in this cycle. Technical and on-chain indicators support the comeback of these assets.
- Avalanche (AVAX): Total open interest in the US dollar is a metric used to identify the value of all open contracts across derivatives exchanges in a given token. For AVAX, open interest recorded a spike on November 22, and since then, it holds steady above average, per Santiment data.
- Polkadot (DOT): Volume traded in DOT and address activity remains close to average and above average levels in some cases, meaning there is an increase in interest in this token from crypto traders.
- Fantom (FTM): FTM gained nearly 20% in the past week and has been rallying, with a 44% increase in its value.
- Internet Computer Protocol (ICP): ICP observed an 18% increase in its value and has been on a multi-month downtrend, which ended on November 22.
- Sui Protocol (SUI): SUI trades at $3.4350 at the time of writing and has been showing a steady increase in its value, with a 15.26% rally possible.
Top 5 Altcoin Targets This Cycle
Based on technical and on-chain indicators, here are the top 5 altcoin targets this cycle:
- Avalanche (AVAX): AVAX could extend its gains by 55% to revisit its March 2024 peak, and the target is at the $80 level.
- Fantom (FTM): FTM could rally 16% in the coming weeks and revisit its March 2024 peak of $1.2292, with a target of $1.6817.
- Sui Protocol (SUI): SUI could rally 15.26% upward, with a target of $3.9409.
- Internet Computer Protocol (ICP): ICP could retest its 2024 peak at $20.9850, with a target of $9.4790 as a key support level.
- Polkadot (DOT): DOT could extend its gains by 50% if the token makes a resurgence in the upcoming altcoin season, with a target of $11.8890 and a possible resistance at $10.50.
Conclusion
The top 5 altcoins from the 2021 bull run are showing signs of gearing up for an explosive move this cycle. With a decline in Bitcoin dominance and capital rotation into altcoins, these tokens could be on the verge of a significant rally. Traders should consider adding these tokens to their portfolio to take advantage of the potential gains.
Prediction:
Based on the analysis, we predict that the top 5 altcoins from the 2021 bull run will experience a significant rally in the coming weeks. The targets mentioned above could be reached, and traders should be prepared to take advantage of the potential gains.
Key Takeaways:
- Bitcoin dominance has dwindled, paving the way for capital rotation into altcoins.
- The altcoin season index shows a steady climb, indicating a possible alt season.
- Technical and on-chain indicators support the comeback of altcoins like AVAX, DOT, FTM, ICP, and SUI.
- These tokens could experience a significant rally in the coming weeks, with targets mentioned above.
Disclaimer:
This article does not represent investment advice. The content and materials featured on this page are for educational purposes only. Traders should do their own research and consider their own risk tolerance before making any investment decisions.
