Recent days have seen bullish divergence for altcoins, sparking optimism among traders and analysts. This phenomenon, where prices make lower lows while indicators like RSI or MACD show higher lows, could signal a trend reversal.
What Is Bullish Divergence?
Bullish divergence occurs when prices continue to decline or remain flat while momentum indicators, such as the RSI, start to rise. This generally indicates weakening selling pressure and a potential upcoming shift in direction.
Why It Matters Now?
Altcoins have experienced weeks or even months of consolidation while Bitcoin stole the spotlight. However, current patterns indicate that while prices have been moving sideways or down, indicators like the RSI are quietly trending upward, hinting at hidden strength.
Key Altcoins Showing Strength?
Leading altcoins such as Ethereum (ETH), Chainlink (LINK), and Avalanche (AVAX) are among those flashing divergence. These signs, combined with increasing volume and market interest, could lead to breakouts if Bitcoin stabilizes.
With bullish divergence building across the market, traders are closely watching for confirmation. A strong move from several leading altcoins could renew retail interest and kick off the next phase of altseason.
