Altcoins like Solana (SOL), Ripple (XRP), Cardano (ADA), and Tron (TRX) have recorded impressive increases of 15-90% in the past week. While BTC and ETH are moving sideways amid the bullish wave of altcoins, interest in the potential entry into altcoin season is increasing. However, this price surge is still incomplete as the price of ETH, the largest altcoin in the market, is hovering around $3,000.
When will the altcoin season actually begin?
Currently, the real price surge has yet to begin! Historically, altcoins often explode after accumulation phases of Bitcoin and Ethereum, when profits are transferred to smaller market cap coins.
QCP Capital noted that Bitcoin's dominance is currently around 60%, but needs to drop below 58% to confirm the start of the altcoin season.
Bitcoin dominance index | Source: CoinMarketCap
In their report on Telegram, QCP Capital showed that the price of Solana surged rapidly over the past weekend with a 17% increase and is facing a key resistance level of $240. Analysts at QCP believe that the pro-cryptocurrency stance of the Trump administration has triggered excitement for an upcoming altcoin season.
They also forecast that the price of Bitcoin could reach $100K under favorable conditions. However, as the Trump administration continues into January, investor interest in altcoins may rise with expectations of favorable cryptocurrency policies.
Despite the outflow of Bitcoin ETF last Thursday and Friday, Bitcoin still maintains strong support thanks to interest from institutions. Moreover, large corporations like MicroStrategy and Metaplanet continue to buy large amounts of Bitcoin even at the price of $90,000.
The increase in ETH price remains a key factor
Although the altcoin market has delivered impressive profits, the price of ETH has not yet reached the expected increase. After reaching a high of $3,444 in early November, ETH has corrected nearly 10% since then. The price of ETH today has recovered 1.13% at the time of reporting, finding strong support at $3,000.
Famous cryptocurrency analyst Ali Martinez notes that there is a strong demand zone at $3,000, where 2.82 million addresses have accumulated over 6.14 million ETH. This will serve as a strong support zone for Ethereum's recovery, contributing to the explosion of the altcoin season.
Additionally, Ethereum's logarithmic regression model suggests that the price could rise to $9,200 by May 2025. If the price surge lasts longer according to historical trends, it could rise to $17,600. This indicates that analysts predict the altcoin season will occur next year.
Moreover, interest in the Ethereum spot ETF has rebounded after Donald Trump's victory, making the net flow become positive.
