Cryptocurrency analytics firm Alphractal has suggested that the altcoin market could enter a strong bullish wave in the near future.
The company highlighted two key indicators to assess this possibility: Altcoin Dominance Excluding Stablecoins and Altcoin Dominance Excluding Stablecoins with Ethereum.
According to Alphractal’s analysis, altcoin dominance, excluding stablecoins, has historically found strong support at the 25% level. This rate usually indicates periods when altcoins lose significant value during periods when Bitcoin and stablecoins dominate the market. However, analysts believe that periods when this dominance rate fluctuates between 24% and 25.3% are followed by altcoin seasons, which usually last for a few weeks.
When Ethereum is excluded, the picture changes slightly. Noting that Ethereum plays a critical role in altcoin dominance, Alphractal states that the historical support level of this metric is around 18%. The fact that it has fallen below this level only a few times in the past coincides with periods when Bitcoin was rapidly losing market share to altcoins.
The company also acknowledges that these support levels alone do not guarantee an upcoming altcoin season.
*This is not investment advice.
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