The conference around a season of Altcoin has been on the lips of members of the cryptographic community since the start of the year. However, most Altcoins have not been able to support a significant bullish momentum in recent months.
Interestingly, an intelligence company on the market has demonstrated the projection that these digital assets should exceed Bitcoin, the largest cryptocurrency in the world by market capitalization, in the coming months.
Is the Alts-season at the corner of the street?
In an article on June 14 on the X social media platform, the Alphracttal chain analysis platform revealed that “something big” is about to happen with altcoins. This prediction is based on the metric of the Altcoin dominance and its movement around a historically relevant level of support.
Alphractal’s analysis examined two Altcoin dominance measures: one that excluded all the stablecoins and another which excluded Ethereum and all the stablecoins. Historically, the first found solid support of around 25%, a level that has often served as a springboard for the main rallies of Altcoin.
Source: @Alphractal on X
As indicated in the graph above, the metric of the dominance fell at the level of 25% before rebounding at around 35% in 2020. Likewise, the metric decreased to 24% before recovering to more than 50% in 2021 – at the time of the last major season.
Currently, the metric of dominance is around 27.91% and could be faced with a potential reversal when approaching this crucial support. Therefore, there is an increased probability for Altcoins to attend major market movements in the coming months.
As for the metric of dominance – to the exclusion of ETH and Stablecoins, critical support is around 18%. The violation of this support can historically correlate significant price movements which have enabled Altcoins to obtain market share before Bitcoin.
Source: @Alphractal on X
In the end, the movement of these dominance measures indicates that the market could be on the brink of volatility in the coming days. Alphractal has mentioned that many altcoins will probably surpass bitcoin in the coming months, that the first cryptocurrency increases or falls.
The chain analysis company concluded:
These levels do not guarantee the start of an Altcoin season, but they have turned out to be significant signals with a high historical probability of leading to major market movements.
Ethereum, the King of Altcoins
Ethereum still ranks like the second largest cryptocurrency in the digital asset sector, with a market capitalization of more than 302.2 billion dollars. To date, the ETH token is estimated at around $ 2,504, reflecting a price drop of 1.6% in the last 24 hours.
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView
Istock star image, tradingview graphic
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