Merlijn The Trader, a respected voice in the crypto analysis space, has sparked fresh excitement across the digital asset community with his latest insight on X, stating that “Altcoin Season 3.0 is setting up exactly like 1.0 and 2.0.” According to him, the current market structure mirrors the beginning stages of previous altcoin parabolic rallies, hinting that a massive surge in altcoin valuations could be on the horizon.
This bold prediction arrives as altcoins begin to show signs of renewed strength, both technically and fundamentally, after months of underperformance relative to Bitcoin. The idea that the market is at “the beginning of the parabola” suggests that the early stages of a broader trend reversal are underway—one that may elevate mid- and small-cap crypto assets to new heights, just as seen in 2017 and 2021.
Altcoin Season 3.0 is setting up exactly like 1.0 and 2.0.
We’re at the beginning of the parabola.
Zoom out. Stay focused. pic.twitter.com/K2aLtCCqhE
— Merlijn The Trader (@MerlijnTrader) April 6, 2025
Altcoin Seasons’ Historical Context
To fully appreciate Merlijn’s assessment, it’s important to understand what constitutes an “altcoin season.” The term describes a period in the cryptocurrency market when altcoins—digital assets other than Bitcoin—outperform BTC significantly in both price appreciation and investor attention.
In Altcoin Season 1.0, back in 2017, coins like Ethereum, Litecoin, and XRP surged to all-time highs as retail investors flooded into the market. In 2021, Altcoin Season 2.0 followed a similar trajectory, with DeFi tokens, meme coins, and NFTs leading the charge.
Each of these phases shared key technical and macroeconomic ingredients: consolidation in Bitcoin dominance, increased liquidity flowing into riskier assets, and the emergence of new narratives or technologies that captured investor enthusiasm. Today, those signs appear to be re-emerging.
Parabolic Structure and Technical Setup
Merlijn’s comment on the market being at “the beginning of the parabola” alludes to the typical price behavior seen during previous altcoin runs. Parabolic moves are characterized by rapidly accelerating price action—often beginning subtly before bursting into exponential growth. Current technical indicators across various altcoins show similar basing structures, breakouts from long-term resistance levels, and rising volumes—hallmarks of early-stage parabolic advances.
Moreover, Bitcoin dominance charts are showing signs of stalling after a strong run. Historically, when Bitcoin’s dominance declines after a major rally, altcoins begin to outperform as capital rotates into higher-risk assets in search of greater returns. If this trend continues, the technical groundwork for Altcoin Season 3.0 could indeed be falling into place.
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Fundamental Catalysts Backing the Move
This time around, altcoins are not just riding on speculative momentum. A maturing ecosystem of layer 1 blockchains, scaling solutions, interoperability protocols, real-world asset integrations, and renewed institutional interest is forming the backbone of this emerging cycle. Projects like Solana, Avalanche, and Polkadot have shown substantial growth in usage metrics, while niche segments like Web3 gaming, AI-infused tokens, and decentralized social networks are gaining traction.
In addition, macroeconomic conditions—particularly the shift in interest rate expectations and mounting concerns over traditional financial systems—are once again pushing investors toward decentralized alternatives. With Bitcoin setting the tone by breaking into new price territories, altcoins are now poised to follow with their explosive moves.
A Word of Caution
While the optimism surrounding Altcoin Season 3.0 is palpable, seasoned investors know that such periods can also be volatile and short-lived. Parabolic rallies, by nature, do not last indefinitely and are often followed by sharp corrections. As such, timing entries and exits, understanding the fundamentals of individual projects, and employing sound risk management remain essential.
Merlijn The Trader’s insight serves as a timely reminder that the crypto market may be entering one of its most dynamic phases yet. With technical setups aligning and broader market conditions favoring a rotation into altcoins, the
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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