Chances of altcoin season down, but 3 indicators point to revival potential
Although the altcoin market is facing difficulties, three important indicators show their potential for recovery in the future.
Firstly, the altcoin season index has now dropped to 49, showing a decline in Bitcoin's dominance over altcoins. Previously, the index reached 88 on December 4, indicating a period when altcoins were able to outperform Bitcoin. However, Bitcoin's dominance phenomenon shows an optimistic trend when this index decreased from 62% to 58.82%, showing that altcoins are gradually regaining market share .
Second, the market capitalization of altcoins (TOTAL2) fell to $1.35 trillion, but there were signs of breaking out of a descending triangle, which could signal a potential reversal. If trading volume increases, this capitalization is likely to return to $1.65 trillion, boosting the value of altcoins .
Finally, investor interest is showing signs of recovery, with many investors actively buying into altcoins, which could lead to a strong recovery in the near term .