Altcoins FET, AAVE, DOGE See 15% Accumulation, Altseason Looms

Several altcoins, including FET, AAVE, and DOGE, have seen significant accumulation, sparking discussions about the potential start of a new altseason. Market data indicates a positive impulse signal for altcoins, suggesting that the market may be on the brink of a broader altcoin rally.

FET, or Fetch.ai, is a decentralized machine learning platform that enables the creation of autonomous economic agents. AAVE is a decentralized finance (DeFi) protocol that allows users to lend and borrow cryptocurrencies. DOGE, originally created as a joke, has gained significant traction and is now widely accepted as a form of payment by various merchants.

The increased interest in these altcoins could be attributed to several factors. The growing adoption of blockchain technology and decentralized finance has led to a greater demand for altcoins that offer unique use cases and functionalities. Additionally, the recent price movements in the cryptocurrency market may have encouraged investors to diversify their portfolios by investing in altcoins.

The potential for a new altseason is further supported by the Bitget altcoin season index, which provides real-time insights into the state of the altcoin market. The index, which tracks the performance of altcoins relative to Bitcoin, has shown signs of improvement, indicating that altcoins may be poised for a rally.

However, it is important to note that the cryptocurrency market is highly volatile and unpredictable. While the current trends may suggest a new altseason, there is no guarantee that this will materialize. Investors should exercise caution and conduct thorough research before making any investment decisions.

In a recent report, CryptoQuant analyst Joao Wedson highlighted massive accumulation across Aave [AAVE], Dogecoin [DOGE], Maker [MKR], Chainlink [LINK], Artificial Superintelligence Alliance [FET], and more. The red bars show outflows (accumulation) of tokens moved from exchanges to users’ wallets. Binance saw more outflows than inflows, suggesting growing conviction of a likely surge.

Swissblock data suggests that 15% of the top 100 altcoins had a positive impulsive signal per its proprietary model. This meant that we could be in the early innings of a strong altcoin season. Additionally, the buying power and rotation have been happening subtly since mid-June. Notably, the USDT dominance has dropped from 5% to 4.5% since late June.

When tracked from April, USDT.D has declined by 2.5% from 6% to 4.5%. This marked the Q2 bottom and subsequent recovery into Q3. It meant buying pressure increased as users ditched their USDT for their favorite altcoin gems. A similar trend was observed last November and mirrored the ETH/BTC ratio surge, too. ETH/BTC ratio surged 10% this week, an overall 19% pump since June lows.

In other words, some traders rotated from BTC to ETH, another positive sign for altcoin season. However, at the time of writing, the ETH/BTC ratio tagged the 200-day Simple Moving Average (SMA, blue line). It has been capped at this level for the past two days. A sustained rally above the dynamic level (200-D SMA) could confirm the capital rotation and lift the altcoin sector even further. On the flipside, a drop in the ETH/BTC ratio could cap the altcoin market recovery. It remains to be seen whether the trend will extend.