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As financial markets scrutinize the upcoming decisions of the U.S. Federal Reserve, the cryptocurrency market is undergoing a major transformation. The current dynamics, driven by technical signals and a reconfiguration of liquidity, seem to herald a rise in altcoins. With hopes for rate cuts and the beginning of an “altcoin season”, this period is crucial for investors seeking strategic opportunities. In this context, projects like Optimism, ASI, or Notcoin are emerging as key players to watch closely.
The rate cut, an expected trigger
Today, December 18, the U.S. Federal Reserve, led by Jerome Powell, might announce a rate cut. This decision is highly anticipated by financial markets, especially in a context where the return of liquidity is crucial to support risk assets like cryptos. “If rates drop, it will be extremely positive for the markets,” said crypto analyst Jonathan Nowak in a video posted on his YouTube channel. He estimated the probability of seeing this trend confirmed at 74%.
Moreover, recent data on employment and unemployment in the U.S., released on December 15, will play a key role. The figures indicate a slight increase in the unemployment rate, which reached 7.145 million in November, representing a rise of 161,000 people compared to the previous month. This data reveals a slight slowdown in the U.S. job market, which could prompt the Fed to act quickly to stabilize the economy.
Beginning of the altcoin season and positive signals
The Total 3, an indicator that groups the market capitalization of altcoins excluding bitcoin, ether, and stablecoins, confirms a breakout to the upside of a graphical structure called a “bull flag.” This technical configuration has an 80% chance of continuing to push towards new highs, an observation that underscores the explosive potential of altcoins for this month of December.
Furthermore, bitcoin’s dominance shows signs of weakness, which historically precedes a transfer of value to altcoins. The beginning of the altcoin season is confirmed by the increase in volumes and the rise in liquidity, particularly through USDT. The market cap of USDT has been steadily increasing for 30 days, indicating that investors are preparing to enter the altcoin market.
Altcoins to Watch to End the Year Strong
According to Jonathan Nowak, some altcoins are particularly catching the attention of experts for their growth potential in the current market. Optimism (OP), which is based on a layer 2 technology linked to Ethereum, has crossed decisive technical thresholds. After stabilizing around $1.40, OP surged to $2.62. However, the analyst recommends caution while waiting for a stabilization phase. Additionally, he emphasizes that investing after such a surge carries risks. Therefore, according to Nowak, it is better to “buy during a consolidation rather than on a vertical movement.”
The project Artificial Superintelligence Alliance (ASI), born from the merger between Fetch.ai and other initiatives in the field of artificial intelligence, also offers interesting potential. With a current price hovering around $3.40, ASI remains close to its historical levels and is even consolidating its position. Strong support seems to provide a certain level of security for investors. However, specialists caution against its high valuation, which requires a thoughtful strategy to avoid unpleasant surprises.
Finally, Notcoin (NOT) stands out among undervalued projects. Ranked 116th in terms of market capitalization, this altcoin presents high growth potential, having not yet experienced a spectacular rise. “Notcoin has not yet exploded, neither in price nor in market cap,” observes Nowak, making it a prime target for those willing to take calculated risks. However, due to its volatility, it is recommended to invest in it with a measured approach.
As technical and macroeconomic signals point to an explosive end to December, altcoins offer significant return prospects for savvy investors. Projects like Optimism, ASI, and Notcoin are positioning themselves as serious candidates to capture this new wave of liquidity. However, caution is advised: market volatility could provide short-term corrections before reaching historical highs. For the more strategic, this end of the year could mark the beginning of a euphoric period in the altcoin market.
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Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
