Crypto markets are in the “Banana Zone” and heading toward a “Banana Singularity,” a phase where “everything goes up,” according to Real Vision co-founder and CEO Raoul Pal.

The “Banana Zone,” coined by Pal, refers to periods of significant upward price movement.

“Yes, we are still in the Banana Zone,” Pal said on X on Jan. 10, adding that the first phase of this bull market began with a breakout in November last year.

This phase was followed by consolidation, similar to the 2016–2017 cycle, which Pal noted “won’t last long.”

Pal predicted the next stage, the “Banana Singularity,” as an altcoin season “when everything goes up, followed by a bigger consolidation.”

Altcoin seasons typically follow declines in Bitcoin (BTC) dominance, which currently remains high at 58%, per TradingView.

DeFi researcher 0xNobler appeared to agree with Pal, writing on X that “Bitcoin just entered the acceleration phase” and forecasting a dramatic rise to $500,000, which could “ignite the biggest altseason in history.”

Futures trader CoinMamba, however, offered a more skeptical take, saying, “This sell-off is so bad that we will have an altseason just by prices going back to what it was one week ago.”

Pal described the third and final phase of the Banana Zone as the “concentration phase,” where “core winners explode on to make much higher highs.”

Despite recent corrections, crypto markets have risen 90% year-over-year in total market capitalization, growing from $1.8 trillion to $3.4 trillion after most of 2024 was spent consolidating.

Total market capitalization reached an all-time high of $3.9 trillion on Dec. 17, marking a 27% increase over the previous cycle’s peak.