Expectations for the alt season have increased as a result of rising altcoin market capitalization and a fall in Bitcoin’s dominance.
Experts are making predictions about when the alt season will begin. This comes after a recent capitalization of all crypto, including Ether (ETH). A significant resistance level in market capitalization is now in each.
Since Ether has gained 27% in the last seven days, analysts and traders in crypto have been keeping an eye on altcoins.
According to TradingView, the total market capitalization of altcoins is approximately $1.16 trillion. It has risen by 15% in the last two weeks and is getting close to the resistance levels from when it reached a high of $1.2 trillion in mid-March.
‘Trader Tardigrade’ informed his 50,000 X followers about the crypto market on May 26. He predicted a three-fold increase in its market capitalization. This is the outcome that would occur if it broke out of the “inverse head-and-shoulders pattern.”
“It is expected to breakout in a few weeks time according to this pattern,” they said further.
The altcoin market cap was the subject of an observation made on May 26 by trader and analyst “Red Capital.” He pointed out that it is scheduled for its highest weekly closing since early April 2024.
In the meantime, on May 26, technical analyst “Yoddha” wrote on X, saying “Expect some insane pump in alts when this breaks above the weekly resistance.”
With a similar trend, analyst “Moustache” informed his 120,000 followers on X that “Altseason is just around the corner.”
Analysts have observed a pattern in previous cycles. Ether values change after those of Bitcoin. The markets for altcoins then come next. Lower-cap currencies tend to receive capital as they move down the chain.
Another sign that the altcoin markets are growing is the 3.7% decrease in Bitcoin market dominance to 53.9% during the last two weeks.
Micheal van de Poppe, the founder of MN Trading, observed something in a post on X on May 25. He mentioned that the market had recently corrected by almost 25%. For altcoin, this correction meant a 50-70% decline.
He anticipated that over this cycle, the whole market capitalization which is currently at $2.7 trillion would increase to $15 trillion, a 450% gain.
According to CoinGecko the entire value of crypto has been fluctuating over the last three months. Midway through March, it was $2.9 trillion; on May 1, it had fallen to $2.3 trillion.
