- Analysts anticipate explosive altcoin rallies, citing the market’s current disbelief stage.
- Key indicators watched include the 20-day EMA, Stochastic RSI, and Bitcoin dominance.
- Altcoin cap holds above $250B despite a recent 17% drop, signaling a potential upside.
The altcoin market, often overshadowed by the behemoth Bitcoin, might be on the cusp of a significant rally, according to multiple market watchers. These experts closely monitor technical indicators that could signal an impending surge in the value of alternative cryptocurrencies.
In a recent post on X, widely followed crypto analyst Milkybull suggested that the altcoin market is currently in the “disbelief stage.” This phase is characterized by investor skepticism despite positive market trends.
Historically, this stage has been a precursor to a robust rally, the analyst observed. Milkybull pointed out instances in the 2016 and 2020 cycles where such occurrences were followed by explosive gains for altcoins.
According to TradingView, the total valuation of altcoins has declined 17.55% over the past 30 days to $264.9 billion. Notably, this valuation excludes the market cap of the top 10 cryptocurrencies.
Despite this downturn, the market cap has managed to stay above the critical $250 billion support level. In parallel, pseudonymous crypto trader Rekt Capital asserted that the market is “positioning itself for a future move to the upside.”
The three indicators under scrutiny by prominent traders include the 20-day exponential moving average (EMA), the Stochastic RSI, and Bitcoin dominance. The EMA provides a weighted average price over the last 20 days.
Titan of Crypto, another pseudonymous trader, highlighted that a bullish crossover on the Stochastic RSI, combined with a retest of the EMA20, could signal the start of rally time.
Currently, Bitcoin’s dominance stands at 54.7%, having decreased by 0.56% over the past week. According to technical analyst Yoddha, a further decline in Bitcoin dominance could trigger the beginning of an altcoin season, a period where altcoins outperform Bitcoin.
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