Speculation is mounting once again as analysts discuss the possibility of altseason making a comeback. This comes after a recent surge in the total altcoin market capitalization, including Ether (ETH), which is now approaching a significant resistance level.
Traders and analysts in the crypto space have been closely watching altcoins following Ether’s impressive 27% gain over the past week. According to TradingView, the total market capitalization of altcoins currently stands at around $1.16 trillion. This represents a 15% increase over the past two weeks and brings it close to the resistance levels seen in mid-March when it reached $1.2 trillion.
On May 26, a popular trader known as ‘Trader Tardigrade’ shared with their 50,000 followers on X that the altcoin market could potentially experience a surge three times its total market cap if it manages to break out from an “inverse head-and-shoulders pattern.” They added that this breakout is expected to occur in the next few weeks based on the pattern they observed.
Trader and analyst ‘Rekt Capital’ pointed out on May 26 that the altcoin market cap is on track to achieve its highest weekly close since early April 2024. Meanwhile, technical analyst ‘Yoddha’ shared a post on X stating, “Expect some insane pump in alts when this breaks above the weekly resistance” on the same day.
Another analyst, ‘Moustache,’ shared a similar chart with his 120,000 followers on X, confidently stating, “Altseason is just around the corner.”
Analysts have also noticed a pattern in previous cycles, where Bitcoin prices typically rise first, followed by Ether, and then the altcoin markets. This is because capital tends to flow down the chain into lower-cap coins. The decline of Bitcoin market dominance by 3.7% over the past two weeks to 53.9% further supports the strengthening altcoin markets.
In a post on X on May 25, Michaël van de Poppe, the founder of MN Trading, observed that the recent market correction, which saw a 25% drop, resulted in a 50-70% correction for altcoins. He predicts that in this cycle, the total market capitalization will reach $15 trillion, marking a 450% gain from its current levels of $2.7 trillion.
According to CoinGecko, the total crypto capitalization has been range-bound for the past three months, fluctuating between $2.9 trillion in mid-March and hitting a low of $2.3 trillion on May 1.
In the world of crypto, the battle between regulatory authorities like the SEC and the legal power of the cryptocurrency industry is often compared to the epic clash between Godzilla and Kong.