The cryptocurrency market is displaying signs of greed ahead of the upcoming altcoin season, leading to significant price surges for assets like Akash Network (AKT) and Arcblock (ABT).
As the altcoin season approaches, trader sentiment has shifted from fear to greed. According to market intelligence platform Santiment, this shift often indicates a local top or peak in the market before a correction.
Santiment’s analysis also suggests that trader sentiment towards more speculative assets can be a reliable indicator of market trends. A sudden increase in calls for an altcoin season, where altcoins outperform Bitcoin (BTC), can be a valuable metric to monitor as the market recovers from last week’s dip.
Interestingly, data from Santiment reveals a pattern similar to that seen in July. There was a spike in discussions about the altcoin season in July, signaling a market top. This trend is now unfolding, leading to recent price drops across the market.
Despite this, the market has started to recover, with altcoins like AKT and ABT leading the way in 24-hour gains. Akash Network has seen a 21.4% increase in the past 24 hours and a 36.6% increase in the last seven days.
Following a sudden drop to $1.5127 on Dec. 11, AKT experienced a slump but managed to stay above the $1.5 support level. The token used the market recovery to bounce back, reaching a resistance point of $1.8194 on Dec. 12. Despite a subsequent decline, AKT regained the $2 price level and is currently trading at $2.28.
In contrast, Arcblock has seen a more significant price increase. While consolidating from Dec. 11-12, ABT started an uptrend as the overall market momentum increased. Within 24 hours, ABT surged 101% from $0.1544 to $0.3104, reaching a price level not seen since July 2019. Despite facing resistance at a five-year high, ABT has maintained its upward trend and is currently trading at $0.2479, up 57% in the last 24 hours.
While an altcoin season may offer substantial gains for investors, it also comes with increased volatility and risk.