The altcoin market is showing interesting dynamics, raising questions about how soon we might see a new altseason. Despite a bullish start to the month, the anticipated altseason has yet to materialize.
Current Market Situation
Not all altcoins are behaving similarly. While tokens like LINK and AAVE are moving higher, others including MANA, ETH, and ADA are consolidating and waiting for their moment. The altcoin market cap is testing the crucial resistance at $1.64 trillion, but a rejection could circulate fears of an extended pullback below $1.5 trillion.
Technical Analysis of Altcoins
As seen in the chart, the market cap excluding Bitcoin has faced a rejection just below its all-time high at $1.71 trillion. It was expected to be a minor pullback, but consecutive weeks under bearish influence raise concerns, especially since the volume has returned to 2021 levels. The RSI displayed a bearish divergence but has yet to mark highs, which could be close to 85.
Prospects and Forecasts
The altseason experienced a 'golden cross' in recent days, resembling the 2020-21 cycle. The upcoming Q1 of 2025 is expected to be quite explosive. Although Bitcoin dominance has peaked, it is expected to decline, potentially leading to one of the strongest Altseasons in history. Focus on projects with strong fundamentals such as Worldcoin, Uniswap, AAVE, Chainlink, and Maker. Promising projects like Ondo, Solana, and BinanceCoin continue to advance in various sectors.
While the altcoin market faces temporary challenges, its future prospects remain promising. The anticipated drop in Bitcoin dominance and a developed altcoin ecosystem may lead to the next growth wave.
