The crypto market is showing signs of greed as it braces for the upcoming altcoin season, leading to impressive surges in the prices of assets such as Akash Network (AKT) and Arcblock (ABT).
Amid the imminent altcoin season, trader sentiment has shifted from fear to greed. The market intelligence platform Santiment noted that this is often a sign of a local top, or a peak in the market before a correction.
Santiment’s post also suggested that the sentiment of traders towards more speculative assets is a reliable indicator of market trends. A sudden spike in calls for an altcoin season, or a period when altcoins outperform Bitcoin (BTC) can be a useful metric to track as the market tries to recover from last week’s dip.
Interestingly, data from Santiment shows a repetition of the pattern observed in July. Notably, a similar spike in discussions surrounding the altcoin season occurred in July, signaling a market top. This trend is currently playing out, resulting in the recent price drop across the board.
AKT and ABT surge
However, the market has now staged a recovery, with several altcoins, including AKT and ABT, taking the lead in 24-hour gains. In particular, Akash Network has rallied 21.4% over the past 24 hours and 36.6% in the last seven days.
The latest price uptick immediately followed a sudden drop to $1.5127 on Dec. 11. AKT recorded a slump on that day, but held up quite well above the $1.5 psychological support level. The token leveraged the ensuing market recovery to mount a comeback.
This comeback resulted in a sustained surge to the resistance point at $1.8194 on Dec. 12. This resistance triggered another decline, but the bulls defended against any substantial drop. AKT eventually reclaimed the $2 price territory yesterday, now trading for $2.28.
Meanwhile, ABT is witnessing a more substantial price increase. Unlike AKT, Arcblock continued to consolidate from Dec. 11 – 12. The crypto asset’s recent uptrend started yesterday, as the broader market’s momentum picked up.
ABT rallied 101% from $0.1544 to $0.3104 within 24 hours. The last time the token saw the $0.3104 price territory was in July 2019. Despite opposition faced at the five-year-high, ABT has retained its uptrend. Currently trading for $0.2479, ABT is up 57% over the last 24 hours.
While an altcoin season could mean huge gains for some investors, it could also result in increased volatility and risk.
