Market participants are observing a turnaround in the cryptocurrency market. While Bitcoin has continued to sustain its bullish momentum, the apex cryptocurrency isn’t the star of the show; altcoins are. Per analysts’ sentiments, altcoins Ether, XRP, Solana, DOGE, Cardano, and Shiba Inu are gearing up for a massive price rally.
On many occasions, during a market cycle, altcoins have historically outperformed Bitcoin, and analysts are convinced that market indicators are now collectively validating a highly promising run referred to as altcoin season.
Pseudonymous analyst CryptoJelleNL was one the first key players to note that technical, analytical data has flashed a positive signal for altcoins.
#Altcoins are about to remind everyone what a real bull market looks like.We have seen nothing yet. pic.twitter.com/UsygtJAjOo
— Jelle (@CryptoJelleNL) May 27, 2024
Further strengthening this position, a crypto analytics platform CryptoQuant analyst asserts that the altcoin season could kick off much earlier than the market anticipates.
Should Ethereum’s price follow a particular trajectory, altcoins could easily flip Bitcoin’s run in the coming weeks.
“Ethereum is surpassing Bitcoin in the growth of open interest in the current period. Are we approaching altcoin season? If Ethereum’s price continues to consolidate in the current range, it’s very possible that the altcoin season will start sooner than expected.” the analyst wrote.
On-chain activities validate the market’s bullish outlook on altcoins
Meanwhile, a handful of altcoins seem to have met and surpassed market expectations. ETH being one such asset, has been on the run since the SEC gave its stamp to Ethereum ETF applications.
Last week, ETH soared by 22% as the hype of Ethereum-based ETFs soared. ETH’s futures market has also depicted remarkable activity. CryptoQuant notes that the preference for Ethereum has been spotlighted in “the increase in the ETH-BTC Open Interest ratio from 0.54 to 0.67.”
Even more importantly, permanent ETH holders are making purchases of more than 100,000 ETH, the highest daily level observed since 2023.
Similarly, DOGE, the most valued meme coin by market cap, is preparing to test new resistance levels.
As cryptocurrency analyst Ali Chart explained in a recent post shared with X:
“Dogecoin is encountering significant resistance between $0.166 and $0.171, where 75,500 addresses have acquired nearly 10 billion $DOGE. However, once this barrier is overcome, #DOGE has the potential to double, with the next key resistance around $0.322.”
The on-chain movement also highlights crypto whales and sharks’ heightened accumulation of altcoins like ETH, XRP, SOL, ADA, and LINK.
