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The dollar cost averaging (DCA) strategy can generate losses when the market enters a downward trend. However, at certain stages, it can be very effective when investors choose the right moment to start.
Several factors suggest that December may be an ideal period to start this strategy. The following sections provide a detailed explanation of these factors.
4 Reasons to Start DCA in Altcoins from December
Start a DCA strategy We do not guarantee that prices will increase after your first purchase. These approaches require proper capital allocation so that investors avoid defaults and ensure optimal entry prices.
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The decrease in volume of an altcoin creates a golden period for continuous investment in a fixed amount
The first reason stems from the decrease in altcoin trading volume, which reflects a lull in the market similar to previous market lows.
According to DarkFost analysis, a comparison between the 30-day altcoin volume (vs. stipplecoin pairs) and the annual average shows that altcoins have entered the “buy zone”.
The chart shows that historical periods when the 30-day altcoin volume has fallen below the annual average often define the bottom of the market. These phases can continue and test the patience of investors.
Darkfoust said What you do “This is a period that encourages the use of DCA if you bet on the continuation of the uptrend. It is a phase that can last weeks or even months, which provides enough time to optimize the DCA strategy with well-targeted entry points.”
Low volume indicates that many sellers have already completed their selling activities, but market sentiment remains too weak to recover. As a result, DCA can be performed well under such conditions.
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Low social interest is consistent with market bottom conditions
The second reason derives from the decline of social interest, as reflected in Google Trends – a counter-signal often indicated possible speculative opportunities.
Data from Joao Widson, CEO of Alphractal, indicate that searches for topics related to cryptocurrencies, major exchanges such as Binance or OKX, and market trackers such as CoinMarketCap or CoinGecko have decreased by 70% since their peak in September 2025.
Joao Widson said what you do “A little social interest has historically been associated with bear markets – but ironically, these periods have also been the best times to speculate while everyone else is not participating.”
His reasoning falls in line with the classic mentality of being greedy when others are afraid. Historical data shows that declining interest usually appears near the bottom of the market. This behavior seems to be characteristic of the cryptocurrency market.
Note also Santiment what you do Negative discussions on various platforms, including X, Reddit, Telegram, 4Chan, BitcoinTalk and Farcaster, often align with market funds. This stereotype appeared recently.
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95% of altcoins are trading below their 200 day moving average
The third reason comes from technical indicators. Almost 95% of altcoins are trading below the 200-day simple moving average (SMA), which is a historically significant buy signal.
CryptoQuant data shows that only 5% of altcoins are currently trading above their 200-day SMA. This ratio reflects the difficult circumstances of altcoin holders, many of whom are likely to suffer losses.
Historically, when this measure falls below 5%, the market often forms a bottom and then makes strong recoveries.
From this perspective, investors who gradually allocate capital and initiate DCA during such phases can realize profits after several months.
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USDT dominance shows signs of correction in December
The final reason comes from the dominance of USDT (USDT.D), which reflects USDT’s share of the total market. When USDT.D decreases, it indicates that investors are using USDT to buy altcoins.
This change appears to have occurred in December with the USDT.D pulling out of the 6% resistance zone.
CrypFlow observation also indicates that the weekly stochastic RSI for USDT.D confirms a bearish crossover.
A recent report from BeInCrypto stated what you do The total market capitalization of stablecoins began to rise in early December after falling throughout November. This trend reflects the growing accumulation of stablecoins in preparation for buying opportunities.
These four factors suggest that December provides several key conditions for a DCA strategy. However, choosing altcoins for hoarding presents a separate challenge. Many experts believe that The market has changedandNot all altcoins offer strong earnings As it was in previous altcoin seasons.
