Analytical firm Alphractal highlights two important metrics that may precede an upswing in altcoins in the crypto market.
Altcoin Dominance Metric
Currently, altcoin dominance (excluding stablecoins) is hovering near the 25% mark. This level has historically indicated the bottom of the market share for altcoins before sharp recoveries. Additionally, altcoin dominance (excluding ETH and stablecoins) is slightly above 18%. When this level is tested or briefly breached, it can trigger rapid rotations into lower-cap altcoins at Bitcoin’s expense.
Market Outlook
Alphractal suggests that whether Bitcoin continues its rally or enters a correction, altcoins could see increased volatility and potential outperformance either way. With dominance levels nearing inflection points, traders should stay alert for momentum shifts, especially if Bitcoin dominance begins to slip.
Conclusions and Recommendations
While not every touch of support leads to an altseason, historical data shows that these dominance zones often precede significant market share gains by altcoins, especially smaller caps. Investors and traders should start paying close attention to altcoin charts and be prepared for potential shifts in market dynamics.
It is advisable to keep a close watch on altcoin dominance and potential changes that may impact the market in the near future.
