Altcoins Under Pressure: Could November Be a Turning Point?
The cryptocurrency market has seen turbulent times recently, with altcoins facing significant downward pressure. Over the last year, more altcoins are down 60% or more than those showing gains. However, historical data suggests these moments of extreme pessimism often precede a market rotation. Could November be the month altcoins regain their footing? Let’s dive in.
Bitcoin Dominance and Its Impact on Altcoins
At the time of writing, Bitcoin’s dominance is hovering around 60.6%, indicating an extended period of “Bitcoin Season,” where capital largely favors BTC over other cryptocurrencies. This lack of liquidity has left many altcoins struggling, as highlighted by the latest metrics from Arkham and Alphractal.
Typically, when dominance reaches such high levels, investors begin looking at undervalued altcoins for new opportunities. Historically, this has marked local market bottoms, often followed by a shift in capital to the altcoin market. November, known for its historical loosening of BTC dominance, could be pivotal for this trend.
Signs of Momentum in Key Projects
Despite the overall downturn, certain projects within the altcoin space are displaying positive momentum. Privacy-layer developments are leading this growth, with Starknet (STRK), zkSync (ZK), and Worldcoin (WLD) showcasing strong 30-day development activity. Additionally, projects like Nym (NYM), Shapeshift (FOX), Oasis Protocol (ROSE), and ZCash (ZEC) are demonstrating robust efforts despite current price challenges.
Investors may consider these innovations as signs of early growth sectors in a recovering market. Often, the “smart money” moves first to areas of promise, and these projects might pave the way for a larger altcoin market revival.
Why Sentiment Matters
The cryptocurrency market is currently in one of its lowest sentiment zones since April, as indicated by its placement in the “orange/red” zone. Historically, these zones have marked local bottoms 90% of the time, inviting liquidity back into even the most beaten-down assets.
Monitoring sentiment while keeping an eye on development activities could provide key insights for traders looking to capitalize on potential altcoin upswings. As November unfolds, it will be worth watching whether the anticipated rotation from Bitcoin to altcoins finally begins.
Final Thoughts: Should You Buy?
For those looking to diversify their portfolios, altcoins could offer significant upside potential in the coming months. If you’re considering investing, start by researching promising projects with strong development activity and long-term viability—such as Starknet and ZCash.
As a suggestion, explore the Ledger Nano X, a secure hardware wallet that supports a wide variety of altcoins, including the ones mentioned above. Secure storage is essential for any crypto investor, especially when preparing for a potential market recovery.
