Altcoins are back in the spotlight again. The total value of alternative cryptocurrencies (altcoins) has been on the rise lately.
This rise is happening amid Bitcoin loosening its dominance in the market.
Thus, analysts predict the market to rise by more than 3 times from its current level.
Altcoin Market Cap Surge Ignites Altseason Speculation
The cryptocurrency community is excited about a possible “altseason.” This is when the prices of altcoins, which are cryptocurrencies other than Bitcoin, rise sharply.
People are talking about this because the total value of altcoins, including Ether (ETH), has gone up a lot recently and is nearing a critical point.
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Traders and analysts are monitoring the market, especially after Ether, the second-largest cryptocurrency, gained 27% in the past week.
This big increase has sparked new discussions about whether altcoins might soon outperform the general market.
Technical Analysis Signals Potential Altcoins Breakout
According to data from TradingView, the total altcoin market capitalization currently stands at around $1.16 trillion.
Over the past two weeks, this figure has increased by a remarkable 15%, inching closer to resistance levels last seen in the middle of March.
Several prominent analysts and traders have taken to social media platforms to share their insights and technical analysis.
‘Trader Tardigrade,’ with a substantial following of 50,000 on X (formerly Twitter), identified an “inverse head-and-shoulders pattern” in the altcoin market.
According to this analyst, this could potentially lead to a three-fold increase in total market cap if the pattern is confirmed.
Additionally, another analyst ‘Rekt Capital’ noted that the total value of altcoins is about to reach its highest level for a week since early April 2024.
Technical analyst ‘Yoddha’ echoed similar sentiments, stating, “Expect some insane pump in alts when this breaks above the weekly resistance.”
Further, trader ‘Moustache’ provided a chart to his 120,000 X followers, declaring, “Altseason is just around the corner.”
The chart depicted a potential breakout pattern for altcoins, adding to the growing anticipation among market participants.
Historical cycles have also played a role in shaping analysts’ perspectives.
In previous cycles, Bitcoin’s price movements have often been followed by Ether and then other smaller cryptocurrencies also go up.
Based on these analysts’ different views, money tends to move from Bitcoin to Ether and then to the smaller altcoins.
This observation has further fueled speculation about the potential for an altcoin rally. However, note that past performance is not a guarantee of future results in the digital space.