Bitcoin’s return to $60,000 and surging AI tokens like ICP, FET, and INJ spark discussions of a potential altcoin rally.
- AI tokens have surged, boosting the AI token market cap to around $28.1 billion. Despite gains in select altcoins, the altcoin season index remains at 33%, suggesting a full-scale altcoin rally is unlikely in the immediate future.
The crypto market experienced an uptrend in the past week, with Bitcoin’s [BTC] price returning to the $60,000 level.
This bullish momentum has led to significant surges in several altcoins, particularly in the artificial intelligence (AI) token sector.
These developments have sparked discussions about a possible altcoin rally in the crypto week ahead.
AI tokens lead the charge in the crypto week ahead
An analysis of the market capitalization of AI tokens reveals a continued uptrend, setting a positive tone for the crypto week ahead.
AI tokens such as Internet Computer (ICP), Artificial Superintelligence Alliance [FET], and Injective [INJ] have witnessed substantial increases over the last seven days.
As of this writing, the market capitalization of AI tokens stands at approximately $28.1 billion, showcasing a clear upward trajectory.
If these tokens maintain their current momentum, we could see further increases in market capitalization in the crypto week ahead.
However, it remains uncertain whether this will be sufficient to ignite the long-anticipated altcoin rally.
Is an altcoin rally on the horizon?
Analyzing key price data, several altcoins have demonstrated significant growth over the past 90 days. Bittensor [TAO] increased by 87.1%, while Sui [SUI] rose by 75.7%.
Moreover, Aave [AAVE] gained 72.4%, while Ripple [XRP] was up by 19.6%.
These impressive gains suggest that these altcoins could continue their positive trends in the crypto week ahead.
Despite these encouraging signs, an altcoin rally may still be unlikely in the immediate future.
Data from Blockchain Center indicates that the current altcoin season index is at 33%. For an altcoin season to be declared, 75% of the top 50 coins need to outperform Bitcoin over the last 90 days.
Source: blockchaincenter
As of press time, only about 16 tokens have shown positive trends in the past 90 days, including those mentioned above.
This suggested that while individual altcoins are performing well, the broader market may not yet be ready for a full-scale altcoin rally in the crypto week ahead.
Conclusion
The crypto week ahead holds potential for continued growth in AI tokens and select altcoins. However, market indicators suggest that a widespread altcoin rally may not occur just yet.
Investors should keep a close eye on market trends and perform due diligence before making investment decisions in the coming week.
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