The growing market capitalization of altcoins and the decline in Bitcoin’s dominance have rekindled hopes for an altcoin season.
The total market capitalization of altcoins, including Ethereum (ETH), has surged recently and is now approaching key resistance levels, with analysts once again speculating that the altcoin peak season may be about to begin.
Ethereum has gained 27% in the past seven days, and cryptocurrency traders and analysts have also started to pay attention to altcoins.
According to TradingView data, the total altcoin market cap is currently around $1.16 trillion. Altcoins have risen 15% in the past two weeks and are approaching resistance levels seen when they broke through $1.2 trillion in mid-March.
On May 26, “Trader Tardigrade” told his 50,000 followers on X that the altcoin market could surge to three times the total market value if it can break out of an “inverted head and shoulders pattern.”
They added: “Based on this pattern, a breakout would be expected in a few weeks.”
On May 26, trader and analyst “Rekt Capital” observed that the altcoin market cap is set to record its highest weekly close since early April 2024.
Meanwhile, technical analyst “Yoddha” said in a May 26 article from X: “A wild rally is expected for altcoins when weekly resistance is breached.”
Analyst “Moustache” shared a similar chart with his 120,000 followers on X, saying, “Altseason is coming.”
Analysts have also observed that in previous cycles, Bitcoin price moved first, followed by Ethereum and then the altcoin market as capital tended to flow into coins with lower market caps along the chain.
In another sign of strength in the altcoin market, Bitcoin’s market share has fallen 3.7% to 53.9% over the past two weeks.
Michaël van de Poppe, founder of MN Trading, noted in a May 25 X post that the recent market correction was around 25%, which means that altcoins will see a correction of 50-70%.
He predicts that during this cycle, total market capitalization will reach $15 trillion, a 450% increase from the current $2.7 trillion.
Over the past three months, the total cryptocurrency market capitalization has fluctuated between $2.9 trillion in mid-March and a correction low of $2.3 trillion on May 1, according to data from Coingecko.
