This cycle has been tough for altcoin traders.
Many didn’t perform as expected, which forces anyone who wants exposure to altcoins to be much more selective.
For those who still want to get exposure, we’re now entering an interesting period to do so, if we look at overall altcoin trading volumes.
This chart compares the aggregated 30-day altcoin trading volume for stablecoin quote pairs to its annual average.
We’ve entered again a buying zone, defined by 30-day volumes falling below the yearly average.
This is a period that encourages DCA if you’re betting on a continuation of the bullish trend.
It’s a phase that can last for weeks or even months, giving enough time to optimize a DCA strategy with well-targeted entry points.
However, we need to proceed with caution. The market context is difficult to read, and it’s essential to also prepare an invalidation strategy in order to protect capital if the market were to drop further.
Moreover this cycle has shown that it’s better not to hesitate when it comes to taking profits once volumes start surging again and hype returns to the altcoin market.
Written by Darkfost
