In the realm of digital currencies, excitement is brewing as a bullish trend gains traction within the cryptocurrency sector, particularly revolving around alternative coins or “altcoins.” An increase in total market capitalization of all cryptocurrencies excluding Bitcoin (BTC) and Ethereum (ETH) suggests the dawn of an altseason.
Analyzing TradingView’s TOTAL3 crypto index, which consolidates the market cap of all cryptocurrencies except BTC and ETH, the altcoins are forging ahead with vigor, breaking free from a six-month downward trend.
The TOTAL3 index had been grappling with multiple lower highs since the highs of 2024 in late March, establishing formidable resistance. Following scrutiny of this downtrend line from September 21 to 23, a breakthrough was achieved on September 24.
In contrast, Bitcoin and Ethereum are grappling with their individual downtrends, hinting at the inception of an altseason. During an altseason phase, mid and smaller-cap coins tend to outperform their larger counterparts by a significant margin.
Yet, despite the optimism surrounding this development, the sustainability of the altcoins’ market cap being above the preceding resistance level is crucial for the momentum to maintain its course.
Enhancing the altseason narrative are various technical pointers. Notably, the convergence of the 30-day exponential moving average (EMA) towards the 180-day EMA signals a promising bullish crossover.
The shift in trend could be solidified through a monthly moving average intersecting upwards with the six-month indicator, coupled with heightened trading volume.
Acknowledging this breakthrough, Crypto Busy highlighted the emergence of an impending altseason in the TOTAL3 index, affirming that “Altseason is coming.”
Looking into the future, numerous experts and analysts echo a similar sentiment, predicting the dawn of an altseason. Noteworthy figures like Ali Martinez have underlined the forthcoming altcoin season, emphasizing a breakout from the downtrend in the crypto total market cap excluding the top 10 cryptocurrencies.
Alan Santana has portrayed a positive stance towards mid and small-cap coins while maintaining a bearish outlook on Bitcoin, Ethereum, Solana (SOL), and Celestia (TIA) among other mainstream coins.
As the altseason looms closer, investors are advised to exercise caution due to potential price volatility associated with short-term speculation. Constructing a robust investment portfolio and formulating a well-defined strategy is essential for navigating the cryptocurrency market in the upcoming weeks.