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A CryptoQuant analyst has suggested it might be time for investors to load up on altcoins.
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The analyst’s view is based on a key chart.
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Other analysts have also expressed similar views, but the tide may not lift all boats.
Over the past few months, the volatility of altcoins, which makes them appealing to investors with high-risk tolerance, has again proven to be a double-edged sword. Amid broader market uncertainty, most altcoins have tanked over 50% from their Q4 2024 highs.
But now, one analyst suggests that a reversal may be on the horizon.
“It might be time to start a DCA strategy on altcoins,” CryptoQuant analyst “Darkfost” asserted in a report on Thursday.
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DCA, short for dollar-cost averaging, is a popular investment strategy where a fixed amount of money is invested at regular intervals regardless of price action. By suggesting that investors start a DCA altcoin strategy, Darkfost is encouraging investors to load up on altcoins in anticipation of a potential rally.
The analyst’s view is based on an intersection of moving averages on the Aggregated Altcoin Trading Volume for Stablecoin Quote Pairs chart, tracking volumes across multiple altcoin pairs.
Darkfost argues that altcoins have recently entered “a buying zone,” as the 30-day moving average on this chart has fallen below the annual average.
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The analyst highlighted that this last occurred in September 2023, before the beginning of the bullish market run that continued in 2024.
“These phases can last several weeks or even months, but historically, they’ve consistently offered attractive opportunities to set up a DCA strategy,” the CryptoQuant analyst stressed.
