- Bitcoin dominance may break trendline, triggering sharp altcoin price drops.
- Altcoin season usually begins after Bitcoin slows or moves sideways.
- Ethereum, Solana, XRP, and Chainlink are testing key resistance levels.
The crypto market is entering a critical transition phase. After weeks of consistent gains, especially for altcoins, momentum is beginning to slow and that often means a shakeout or fakeout is near.
Historically, Bitcoin pumps first. When it slows or it starts moving sideways, altcoins tend to catch up with strong gains. However, things are changing and Ethereum is showing signs of losing steam.
One analyst has observed a critical trendline on the Bitcoin dominance chart that’s dangerously close to breaking. If that happens, it could mean Bitcoin starts gaining strength fast while altcoins face a sharp pullback.
Related: For the First Time in Two Years, More Money Is Trading Ethereum Than Bitcoin
Even if Bitcoin only climbs above $118,000, the pressure could lead to a fast and painful drop in altcoin prices.
If the trendline breaks, prices often correct quickly, sometimes with sharp 10–20% drops. However, the real liquidity lies below, in the $112,000 to $114,000 zone. A quick dip into that area could flush out weak hands and set up for the next big move upward.
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Before big pumps, there’s usually a short, sharp dump. This clears the way for stronger rallies. If Bitcoin dominance rises quickly and then drops back just as fast, it could finally push the dominance chart into the 50 percent range. That’s where the real altcoin season tends to begin, with major big across the board.
What’s Next For XRP, ETH, SOL And LINK?
Ethereum has hit strong resistance near $3.9K, and is likely to face a short-term pullback or sideways action. Solana recently broke out but needs to hold above $190 to stay bullish. XRP is showing signs of a possible future correction below $3 due to a bearish signal forming, though it’s not confirmed yet.
Chainlink is retesting key support around $17.50–$18; holding this level would be bullish. Overall, while short-term dips are possible, the long-term trend for these altcoins remains positive.
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