The post Are Altcoins Set To Skyrocket? Analysts Spot Promising Signs! appeared first on Coinpedia Fintech News
The cryptocurrency market is bouncing back, and many analysts are excited about the possibility of an “altcoin season” right around the corner. Crypto analyst Moustache points out that altcoins are ready for a big movement. This comes after a recent recovery in the Relative Strength Index (RSI), which has shown positive trends in the past. As Bitcoin’s dominance begins to fade, alternative cryptocurrencies are getting ready to take the spotlight.
Altcoins Set to Explode, Historical Context
In the earlier altcoin cycle, the reclaimed RSI served as a clear signal that significant upward momentum was building. This indicator has shown promising signs in the past, notably during the 2014 to 2018 period when the total altcoin market cap surged from around $56 million to an impressive $10 billion by early 2017.
Meanwhile, the explosive growth seen back then was not just a fluke. It marked a change in market dynamics that brought a massive flow of capital into altcoins. Now, with the total market cap sitting around $927.36 billion, we are seeing a similar RSI pattern reemerge. This could mean that altcoins are on the verge of another breakout!
Analysts believe that a breakout above the current pattern could trigger a flood of liquidity into the altcoin market. This potential influx of funds could speed up price movements, leading to a bullish trend for many altcoins.
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Bitcoin Dominance Waning
While Bitcoin stays around $63,000, its dominance over the crypto market is weakening. Recent price changes are fueling speculation about an upcoming altcoin season, especially since 33 altcoins have done better than Bitcoin. However, for the altcoin season to truly start, at least 50 altcoins need to outperform BTC.
Ethereum, the second-largest cryptocurrency, is bouncing back after hitting 40-month lows against Bitcoin. In the past week, ETH has jumped about 15%, which is better than Bitcoin’s 8% gain.
Other altcoins are also doing well, with big rises from NEAR, FET, SUI, APT, and TAO, showing gains of 25% to 82% in just one week. However, if history, the altcoin market could see significant gains in the coming months.