- Altcoin Sherpa recommends trading high-volume coins like Popcat or AVA Virtual to follow strong market momentum.
- He also highlights the potential of unpumped sectors like ZK tokens or Ethereum Layer 2s for long-term investors.
- Traders must balance risk, liquidity, and timing to choose between active trading or patient accumulation.
As crypto markets surge again in 2025, traders are deciding how to make the most of the momentum.
Altcoin Sherpa, a well-known analyst on X, outlined two practical strategies for navigating the current altcoin bull run. His approach offers insight into how investors can position themselves, depending on their risk appetite and trading style.
Strategy 1: Chasing High-Momentum “Runners”
Altcoin Sherpa’s first strategy involves chasing “runners” — coins that have already pumped and continue to lead the market. These include meme tokens like Popca t and Moodeng , as well as trending AI-related coins such as AVA Virtual . These assets typically show strong trading volume and offer decent liquidity. In this strategy, traders buy dips and ride the wave as long as the uptrend lasts.
“These probably keep going,”
Sherpa wrote.
“Leaders usually keep leading, and these have a bid.”
He pointed out that chasing strong movers removes the opportunity cost of holding slow assets since the capital is already working in active sectors.
However, this “runner” strategy inherently comes with higher risk. Prices may have already multiplied several times, leaving limited upside. If market sentiment shifts, these coins may drop fast. Sherpa warned that valuations can rise to unsustainable levels, where “marginal buyers dry up.”
Strategy 2: Accumulating Undervalued Coins Before a Pump
The second strategy presented focuses more on accumulating coins that haven’t yet pumped. These tokens often belong to currently dormant narratives like centralized exchange ( CEX) AI tokens, Ethereum Layer 2s like Arbitrum , metaverse projects, zero-knowledge (ZK) protocols, or gaming assets. These coins remain under the radar while investors wait for the narrative to rotate back in their favor.
“You get great entries, and if the entire market continues, these coins will pump eventually,”
Sherpa explained. Low market caps mean even a small amount of attention can trigger large percentage gains. Rebrands or narrative shifts can sometimes breathe new life into these forgotten projects.
Still, this approach requires patience. Many of these coins lack liquidity, making it hard to enter or exit positions.
“Sometimes they don’t even really pump,” he added. Without a new story or technical upgrade, older coins may struggle to attract demand.
Investor Style Dictates Optimal Altcoin Strategy
Altcoin Sherpa admitted his personal preference leans towards the first strategy of actively chasing “runners.”
However, he acknowledged that long-term holders might find success accumulating undervalued assets if they’re willing to wait.
“You can buy a basket of spot RWA coins and just sit on them… you just might have to wait a bit.”
Top Performing Altcoins with Up to 56% Monthly Gains. Source: CoinGecko
As the altcoin cycle plays out, these two paths reflect how traders adapt to shifting market conditions — whether by chasing strength or waiting for the next big narrative.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
