Cryptocurrencies are gaining momentum in the market, particularly in the realm of “altcoins,” as a bullish trend emerges. The collective market capitalization of cryptocurrencies excluding Bitcoin (BTC) and Ethereum (ETH) has broken away from a downward trend, indicating the onset of an altseason.
Analysis of the TOTAL3 crypto index, which accounts for all cryptocurrencies apart from BTC and ETH, reveals a capitalization of $614.64 billion, signifying a robust upsurge in altcoins after a six-month downtrend. The index previously faced resistance with three consecutive lower highs post the 2024 peak in late March but managed to breach this resistance on September 24.
While Bitcoin and Ethereum are grappling with their downward trends, the initiation of an altseason is plausible. During an altseason phase, mid and small-cap cryptocurrencies tend to outperform the larger caps significantly.
The breakout above the downtrend line in the TOTAL3 index’s daily closure is a crucial development but requires careful validation and confirmation by holding above the prior resistance level. Moreover, technical indicators, such as the nearing bullish golden cross between the 30-day exponential moving average (EMA) and 180-day EMA, further bolster the altseason hypothesis.
The alignment of the monthly moving average crossing over the six-month indicator upwards with heightened trading volume could cement the trend shift. Additionally, Crypto Busy reported a breakout in the TOTAL3 index, hinting at the impending altseason.
Renowned analysts and traders are endorsing the idea of an altseason dawning. Ali Martinez pointed out a potential altcoin season on the horizon based on a breakout in the crypto total market cap, excluding the top 10 cryptocurrencies. Alan Santana has displayed a bullish outlook towards mid and small-caps while maintaining a bearish stance on Bitcoin, Ethereum, Solana (SOL), Celestia (TIA), and other popular coins.
As investors navigate the evolving market landscape, caution is advised despite promising insights on altcoins. It remains vital to adapt investment strategies and remain vigilant amid the potential price volatility associated with an altseason.