- Altcoin market structure signals a breakout as TOTAL3 nears $1T resistance level
- Bitcoin dominance drops, triggering altseason signals seen in 2017 and 2021 cycles
- Top altcoins like $SONIC and $ATH target booming sectors like AI and gaming tech
The altcoin market, despite recent market corrections and prolonged periods of negative sentiment, is leaning into what could be the perfect setup for an extended altcoin bull run.
Investors who have remained patient during the earlier downturn might soon be rewarded, as several structural patterns and historical trends are signaling that a major breakout is ahead.
The Big Picture: A “Cup and Handle” Breakout Looms
The analyst CryptoJelleNL highlights a major technical setup on the TOTAL3 chart, which tracks the total market cap of all altcoins excluding Bitcoin and Ethereum. The chart shows a classic “cup and handle” pattern, with the “handle” forming throughout 2024.
This pattern is a powerful bullish signal for technical traders. The total altcoin market cap is now testing the key $1 trillion resistance level. According to the analysis, a decisive break above this level could push valuations toward $1.4 trillion or even higher. The fact that the $800 billion level has held as strong support reinforces the bullish case.
Related: Analyst Forecasts Imminent “Altseason” Fueled by Key US CPI Data and Bitcoin Strength
History Rhymes: The “Altseason Zone” Is Here
Analyst Wimar.X adds more fuel to the bullish narrative. He notes that his proprietary Altcoin Index has now officially entered the “altseason zone.” This is a specific condition where altcoins typically begin to outperform Bitcoin by a wide margin.
This exact scenario played out in both 2017 and 2021, two periods that delivered 100x returns for select, high-performing altcoins. With the current cycle shaping up in a similar way, Wimar.X projects that the total market cap for altcoins could soar to as high as $15 trillion by the end of this bull run.
The Sentiment: Primed for a “Disbelief” Rally
The well-known analyst Michaël van de Poppe provides the final piece of the puzzle: market sentiment. He argues that many traders continue to underestimate how powerful altcoin rallies can be when they begin during a period of market pessimism, like the one we are in now.
Historically, altcoins have shown the ability to surge 10x or even 20x when these conditions align. As confidence returns to the market, these smaller-cap tokens often outperform major assets in what is known as a “disbelief pump.”
Related: The Biggest Altseason Is Coming. Here’s Why
Six Altcoins with High Growth Potential
Among his top picks are $ARC, $ATH, $VIRTUAL, $SNX, $SONIC, and $AP. Each of these projects focuses on high-growth narratives such as AI, decentralized infrastructure, synthetic assets, and virtual world integration.
Notably, $SONIC aims to power gaming ecosystems through a Solana-based virtual machine, while $ATH offers decentralized GPU cloud computing for AI workloads.
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