What needs to happen for altcoins to continue the bull market

According to a well-known crypto analyst known as Altcoin Sherpa, the altcoin market will enter a parabolic phase before the current crypto cycle ends.

Toy outline two potential scenarios that could precede a significant rally in altcoins.

First, the analyst suggests that a final capitulation event, which is typically characterized by significant volatility, like what happened at Solana in December 2020, may be necessary. Alternatively, a prolonged period of consolidation similar to that experienced by Zilliqa would could set the stage for a strong surge in altcoins.

Altcoin Sherpa also highlighted the current underperformance of many altcoins against BTC, indicating bearish sentiment. However, he remains bullish on the altcoins in the long term, predicting a possible major rally, although the timing and catalysts remain uncertain.

Drawing on historical patterns, the expert pointed out that past rallies in the altcoin market offer insights into potential future scenarios. Sherpa advises caution with long-term cryptocurrency holdings, noting that few coins consistently outperform Bitcoin ( BTC ) and Ethereum ( ETH ). He also cautioned against assuming that previous high-performing sectors, such as GameFi in 2021, will repeat their successes.

Instead, the analyst suggests focusing on emerging narratives in the crypto space, noting the shift from projects like SOL , LUNA and AVAX to newer equivalents such as YOU ARE A , TIA and NEON.

Despite the current trends, the expert remains optimistic about the eventual revival of DeFi (decentralized finance), although he is not sure when it will happen.