How does the altcoin season start? The invisible flow of the cycle in crypto
Altcoin markets never accelerate randomly. Historically, every rally starts by producing "early signals" in specific segments. Accurately reading these signals is critical for capturing the first part of the rally that provides the highest return.
For this reason, it is insufficient to read altcoin cycles solely from price charts. Indicators such as liquidity movements, network data, institutional capital flows, and thematic momentum show in advance the order and strength with which the rally will progress.
1) What are the Early Signals in Altcoin Segments?
The altcoin season is not a single upward movement. Liquidity typically spreads across segments by following the order below. The early warnings provided by each segment before the rally are different:
Major L1s (ETH, SOL, AVAX)
The first stop for altcoin movements is often major Layer-1 projects.
Early signals:
The rise of BTC dominance stops and turns horizontal
A significant increase in volumes on the L1 side
Daily closes moving above critical resistances
RWA (Real World Assets) Protocols
One of the segments included in the rally with increasing institutional interest.
Early signals:
Acceleration of institutional pilot projects
Increase in TVL in tokenize asset/payment solutions
DeFi Protocols
As liquidity expands, the DeFi side usually produces a strong second wave.
Early signals:
Gaming and Metaverse
Segments that come into play with increased risk appetite.
Early signals:
Breakout of horizontal prices upwards
Growth trend in user numbers
New partnerships and announcements
Meme Coins
The latest and most speculative area of the cycle.
Early signals:
Sudden volume spikes
Inflow of individual investors
Increase in irrational risk appetite
