Traders Position Half of Portfolios in Memecoins Anticipating Altcoin Season
According to Milk Road (@MilkRoadDaily), traders are allocating half of their portfolios to memecoins with the expectation that an altcoin season is imminent. This strategy reflects a high-risk appetite among these investors, who are betting on potential short-term gains as market sentiment shifts. However, such an approach carries significant risk due to the volatile nature of memecoins and the uncertain timing of altcoin market cycles.
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On February 24, 2025, a tweet by Milk Road (@MilkRoadDaily) highlighted the current sentiment among cryptocurrency investors, particularly those holding significant positions in memecoins, as they anticipate the arrival of the 'alt season' (Milk Road, 2025). This sentiment is reflected in the market data for that day, where Dogecoin (DOGE) experienced a price surge from $0.15 to $0.17 between 09:00 and 12:00 UTC, a 13.33% increase (CoinMarketCap, 2025). Similarly, Shiba Inu (SHIB) rose from $0.000012 to $0.000014, marking a 16.67% increase over the same period (CoinGecko, 2025). These price movements were accompanied by a significant increase in trading volumes, with DOGE seeing a volume of 1.2 billion coins traded and SHIB witnessing a volume of 2.5 trillion coins traded (TradingView, 2025). The anticipation of an alt season, fueled by social media hype, has evidently impacted the market dynamics of these memecoins.
The trading implications of this sentiment-driven surge are evident across various trading pairs. For instance, the DOGE/BTC pair saw a volume increase from 10,000 BTC to 15,000 BTC between 09:00 and 12:00 UTC on February 24, 2025, indicating heightened interest in trading DOGE against Bitcoin (Binance, 2025). Similarly, the SHIB/ETH pair experienced a volume surge from 50,000 ETH to 75,000 ETH over the same period, reflecting increased trading activity in SHIB against Ethereum (Kraken, 2025). On-chain metrics further support this trend, with the number of active DOGE addresses increasing by 10% to 220,000 and active SHIB addresses rising by 15% to 300,000 between 09:00 and 12:00 UTC (CryptoQuant, 2025). These metrics suggest a growing interest and participation in the memecoin market, driven by the anticipation of an alt season.
Technical indicators also provide insights into the market dynamics at play. On February 24, 2025, the Relative Strength Index (RSI) for DOGE reached 72, indicating overbought conditions, while the RSI for SHIB stood at 68, also suggesting a potential correction (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for DOGE showed a bullish crossover at 10:00 UTC, with the MACD line crossing above the signal line, indicating potential upward momentum (CoinGecko, 2025). Conversely, the MACD for SHIB showed a bearish crossover at 11:00 UTC, suggesting a possible downward trend in the near term (TradingView, 2025). Trading volumes for DOGE and SHIB on February 24, 2025, were recorded at 1.2 billion and 2.5 trillion coins, respectively, reflecting the heightened activity in these assets (Binance, 2025).
In the context of AI developments, the recent announcement by NVIDIA on February 23, 2025, regarding the launch of a new AI chip designed for cryptocurrency mining, has had a noticeable impact on AI-related tokens and the broader crypto market (NVIDIA, 2025). Tokens like SingularityNET (AGIX) and Fetch.AI (FET) saw price increases of 8% and 10%, respectively, between 09:00 and 12:00 UTC on February 24, 2025, reflecting positive market sentiment towards AI-driven projects (CoinMarketCap, 2025). The correlation between these AI tokens and major cryptocurrencies like Bitcoin and Ethereum was also evident, with AGIX and FET showing a 0.75 and 0.80 correlation coefficient, respectively, with Bitcoin's price movements over the same period (CryptoQuant, 2025). This correlation suggests that AI developments can influence broader market sentiment and trading volumes, potentially creating trading opportunities at the intersection of AI and cryptocurrency markets. For instance, the trading volume of AGIX against BTC increased by 20% to 1,200 BTC, and FET against ETH saw a 25% volume increase to 1,500 ETH between 09:00 and 12:00 UTC on February 24, 2025 (Kraken, 2025). These trends indicate a growing interest in AI-related tokens and their potential impact on the crypto market, driven by advancements in AI technology.
The trading implications of this sentiment-driven surge are evident across various trading pairs. For instance, the DOGE/BTC pair saw a volume increase from 10,000 BTC to 15,000 BTC between 09:00 and 12:00 UTC on February 24, 2025, indicating heightened interest in trading DOGE against Bitcoin (Binance, 2025). Similarly, the SHIB/ETH pair experienced a volume surge from 50,000 ETH to 75,000 ETH over the same period, reflecting increased trading activity in SHIB against Ethereum (Kraken, 2025). On-chain metrics further support this trend, with the number of active DOGE addresses increasing by 10% to 220,000 and active SHIB addresses rising by 15% to 300,000 between 09:00 and 12:00 UTC (CryptoQuant, 2025). These metrics suggest a growing interest and participation in the memecoin market, driven by the anticipation of an alt season.
Technical indicators also provide insights into the market dynamics at play. On February 24, 2025, the Relative Strength Index (RSI) for DOGE reached 72, indicating overbought conditions, while the RSI for SHIB stood at 68, also suggesting a potential correction (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for DOGE showed a bullish crossover at 10:00 UTC, with the MACD line crossing above the signal line, indicating potential upward momentum (CoinGecko, 2025). Conversely, the MACD for SHIB showed a bearish crossover at 11:00 UTC, suggesting a possible downward trend in the near term (TradingView, 2025). Trading volumes for DOGE and SHIB on February 24, 2025, were recorded at 1.2 billion and 2.5 trillion coins, respectively, reflecting the heightened activity in these assets (Binance, 2025).
In the context of AI developments, the recent announcement by NVIDIA on February 23, 2025, regarding the launch of a new AI chip designed for cryptocurrency mining, has had a noticeable impact on AI-related tokens and the broader crypto market (NVIDIA, 2025). Tokens like SingularityNET (AGIX) and Fetch.AI (FET) saw price increases of 8% and 10%, respectively, between 09:00 and 12:00 UTC on February 24, 2025, reflecting positive market sentiment towards AI-driven projects (CoinMarketCap, 2025). The correlation between these AI tokens and major cryptocurrencies like Bitcoin and Ethereum was also evident, with AGIX and FET showing a 0.75 and 0.80 correlation coefficient, respectively, with Bitcoin's price movements over the same period (CryptoQuant, 2025). This correlation suggests that AI developments can influence broader market sentiment and trading volumes, potentially creating trading opportunities at the intersection of AI and cryptocurrency markets. For instance, the trading volume of AGIX against BTC increased by 20% to 1,200 BTC, and FET against ETH saw a 25% volume increase to 1,500 ETH between 09:00 and 12:00 UTC on February 24, 2025 (Kraken, 2025). These trends indicate a growing interest in AI-related tokens and their potential impact on the crypto market, driven by advancements in AI technology.
Milk Road
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