Speculations are arising once again regarding the possibility of altseason commencing, following a recent surge in the overall altcoin market capitalization, which includes Ether (ETH), as it approaches a crucial resistance level.
Traders and analysts within the crypto space have been closely monitoring altcoins after Ether recorded a 27% increase over the past week.
According to TradingView, the current total market capitalization of altcoins stands at approximately $1.16 trillion. This represents a 15% increase over the past two weeks, and it is approaching resistance levels observed in mid-March when it reached $1.2 trillion.
On May 26, an influential trader known as ‘Trader Tardigrade’ shared with his 50,000 followers on X that if the altcoin market manages to break out from an “inverse head-and-shoulders pattern,” it could potentially experience a surge three times its total market cap. They further added that this breakout is expected to occur in a few weeks based on the pattern analysis.
Source: Trader Tardigrade
Furthermore, on May 26, a trader and analyst called ‘Rekt Capital’ noted that the altcoin market cap is on track to achieve its highest weekly closure since early April 2024.
Meanwhile, technical analyst ‘Yoddha’ suggested in a post on X that there could be a significant pump in altcoins once they surpass the weekly resistance level on May 26.
Another analyst, ‘Moustache,’ shared a similar chart with his 120,000 followers on X and expressed his belief that altseason is just around the corner.
Source: Moustache
Analysts have also observed that in previous market cycles, Bitcoin prices tended to rise first, followed by Ether, and then the altcoin markets, as capital tends to flow downwards into lower-cap coins.
The dominance of Bitcoin in the market has declined by 3.7% over the past two weeks, currently standing at 53.9%. This decrease further indicates the strengthening of the altcoin markets.
Related: Bitcoin dominance risks breaking its 18-month uptrend due to the launch of the Ether ETF.
In a post on X on May 25, Michaël van de Poppe, the founder of MN Trading, pointed out that the recent market correction, which reached approximately 25%, resulted in a 50-70% correction for altcoins.
He predicted that in the current cycle, the total market capitalization could reach $15 trillion, representing a 450% gain from the current levels of $2.7 trillion.
According to CoinGecko, the total crypto capitalization has remained within a range between $2.9 trillion in mid-March and a low of $2.3 trillion on May 1 for the past three months.
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