The crypto market is showing signs of a potential altseason, where altcoins significantly outperform Bitcoin. Technical indicators and market sentiments suggest that May 2025 may see the start of a broader altcoin rally.
Signs of Altseason
The TOTAL2 chart, representing the total market capitalization of all cryptocurrencies excluding Bitcoin, has broken above a downtrend line established since January 2025. This breakout is accompanied by a bullish structural change on the daily chart. A decisive move above the $1.25 trillion resistance level may support a strong uptrend.
Decline in USDT Dominance
The USDT dominance chart has dropped to 4.59%, the lowest level since early February. Reaching the 3.90% level, USDT.D may test support, potentially leading to new lows since 2021, indicating capital may be rotating into altcoins and Bitcoin.
Altcoin Prospects
Crypto trader ZERO IKA noted that many altcoins have shown strong growth, with coins like Ether and XRP rising by 44.3% and 20.6%, respectively. Despite recent gains, many altcoins remain 70-90% below their all-time highs, presenting opportunities for recovery.
The decline in Bitcoin and USDT dominance, alongside the growth in altcoin market capitalization, suggests the onset of an altseason. If current trends remain intact, altcoins may continue to strengthen.
