Altcoins May See Final Rally, But Only Quality Coins Will Benefit

Altcoins are anticipated to experience one last significant rally in the current cycle, but only those with genuine utility and robust network activity are expected to see price increases, according to an analyst. Real Vision chief crypto analyst Jamie Coutts expressed his views during an April 3 livestream, stating that while there may be a final breadth thrust from altcoins, the sustainability of this rally remains uncertain. Coutts emphasized that quality altcoins with returning activity will likely see a recovery, as network activity drives prices.

Coutts advised traders to focus on where network activity is concentrated as a guiding principle for crypto trading. He predicted an upswing in the altcoin market within the next two months, contingent on Bitcoin reaching new all-time highs by June. This forecast aligns with Coutts' earlier prediction that Bitcoin could achieve all-time highs before the end of the second quarter of 2025, regardless of economic uncertainties.

Despite recent declines in blockchain network activity and key altcoin indicators, Coutts remains optimistic about the altcoin market's potential. The total crypto market cap has decreased by around 8% over the past 30 days, and several indicators suggest that an altcoin season is not imminent. For instance, Capriole Investments’ Altcoin Speculation Index has dropped significantly, and CoinMarketCap’s Altcoin Season Index indicates a more Bitcoin-dominated market. However, some analysts argue that Bitcoin dominance is no longer a reliable signal for altcoin season.

Coutts' analysis suggests that while the altcoin market is poised for a final big rally, only a select few altcoins will benefit. Traders and investors should closely monitor these altcoins, as they have the potential to reach new all-time highs in the coming months. However, it is crucial to remember that the cryptocurrency market is highly volatile, and past performance does not guarantee future results. Investors should conduct their own research and exercise caution when investing in cryptocurrencies.