Altcoin Sherpa Outlines Two Strategies for 2025 Bull Market

Altcoin Sherpa, a well-known analyst, has shared two strategies for investors to navigate the 2025 altcoin bull market. The first strategy, "chasing high-momentum 'runners,'" involves investing in coins that have already seen significant price increases and continue to lead the market. These coins, such as meme tokens like Popcat and Moodeng, as well as AI-related coins like AVA Virtual, typically exhibit strong trading volume and liquidity. Traders using this strategy aim to buy during dips and ride the upward trend as long as it persists. However, this approach comes with higher risk, as prices may have already multiplied several times, leaving limited upside potential. A shift in market sentiment could lead to a rapid decline in these coins' values.

The second strategy focuses on accumulating undervalued coins before they experience a price surge. These tokens often belong to currently dormant narratives, such as centralized exchange (CEX) AI tokens, Ethereum Layer 2s like Arbitrum, metaverse projects, zero-knowledge (ZK) protocols, or gaming assets. These coins remain under the radar while investors await a narrative shift that could drive their prices higher. This strategy requires patience, as many of these coins lack liquidity, making it challenging to enter or exit positions. Additionally, without a new story or technical upgrade, older coins may struggle to attract demand.

Altcoin Sherpa acknowledges his personal preference for the first strategy, which involves actively chasing "runners," especially for more hands-on traders. However, he recognizes the potential for long-term holders to find success by accumulating undervalued assets, provided they are willing to wait. As the altcoin cycle unfolds, these two strategies reflect how traders adapt to shifting market conditions, whether by chasing strength or waiting for the next big narrative.

Traders must balance risk, liquidity, and timing to choose between active trading or patient accumulation. The choice between these strategies depends on an investor's risk appetite and trading style. Active traders may prefer chasing high-momentum coins, while long-term investors might opt for accumulating undervalued coins. Both strategies have their merits and risks, and investors should carefully consider their approach based on market conditions and personal preferences.