Social interest in the term “altseason” has reached its lowest level in recent times. Analysts at Santiment believe that this situation may precede a new rally in the altcoin market. According to them, historically, similar phases of low attention have often preceded significant price increases for alternative cryptocurrencies.
This is reported by Business • Media
Dynamics of Mentions and Connection to Market Peaks
According to a study by Santiment, comparing weekly mentions of the term “altseason” on social media with the dynamics of Dogecoin shows an interesting trend. Dogecoin, which experts refer to as the “king of speculative assets,” often reacts to changes in sentiment in the risky asset market. During periods of heightened attention to altcoins, particularly meme coins like DOGE, as well as coins with medium and low market capitalization, the FOMO (fear of missing out) effect is observed, which can lead to market peaks.
“According to Santiment, periods of high social interest in altseason have often coincided with local peaks in the crypto market. Conversely, drops in the number of mentions to a minimum in some cases have preceded the beginning of a rise.”
Importance of the Indicator and Current Market State
Experts also point out that the social interest indicator cannot serve as an accurate trading signal. A lack of attention to altcoins does not guarantee future growth; however, such periods often reflect market sentiment and the potential for future changes in asset values. Similar dynamics have already been observed in the history of the crypto market, where low interest in altcoins became a precursor to price rallies.
Previously, analysts at CryptoQuant reported that about 40% of altcoins are trading near historical lows, and selling pressure in the market has reached its highest level in the last five years. Such factors indicate possible trend changes in the market for alternative cryptocurrencies in the near future.