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Altcoins in the Buying Zone? Analyst Says It’s Time to DCA
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Altcoins in the Buying Zone? Analyst Says It’s Time to DCA
Apr 11, 2025 4:29 AM

The digital asset market is still in correction mode, with most alternative cryptocurrencies bleeding out daily, but an analyst says this might be the best time for traders to load up on their bags.

According to a report from CryptoQuant analyst Darkfost, the Aggregated Altcoin Trading Volume for Stablecoin Quote Pairs chart signals that the market is in a buying zone. Hence, Darkfost believes this might be a good time to set up a Dollar-Cost Averaging (DCA) strategy for altcoins.

Altcoins in Buying Zone

A DCA strategy involves regularly investing a fixed amount of money in a crypto asset over a set period, regardless of fluctuations in the coin’s value. This approach reduces the impact of market volatility on the overall purchase because the money is spread out over time.

With DCA, investors get to buy more cryptocurrencies when prices are low and fewer when they are high, ensuring a lower average cost per unit.

Darkfost revealed that the Aggregated Altcoin Trading Volume for Stablecoin Quote Pairs chart identifies favorable periods to buy or sell altcoins with a mid-term outlook. The metric compares the aggregated 30-day average trading volume of altcoins for stablecoin quote pairs with their yearly average.

Currently, the 30-day moving average is below the yearly average, signaling that the metric is in a buying zone.

“It might be time to start a DCA strategy on altcoins,” Darkfost stated.

Is an Altseason Still Coming?

The CryptoQuant analyst mentioned that the last time the 30-day moving average reached its current levels was in September 2023, shortly after the bear market ended.

Although this current phase can last weeks or months, Darkfost, citing historical data, insists that it has consistently offered good opportunities to establish a DCA strategy.

Darkost’s analysis comes as crypto investors still anticipate an altcoin season regardless of the unfavorable state of the macro environment attributed to tariff tensions. Due to the major structural and regulatory changes the crypto industry has seen in this cycle, most analysts believe an altseason in this bull run will not be like previous experiences.

CryptoQuant founder and CEO Ki Young Ju stated less than two months ago that the altseason has already begun, but there would not be direct capital rotation from BTC to altcoins. He said an altseason for this cycle will not be determined by Bitcoin’s dominance but by altcoin trading volumes.

Judging by Darkfost’s analysis, altcoins could still witness significant rallies in the coming months as markets stabilize.

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