Last weekend, the altcoin market experienced significant activity, with cryptocurrencies like Solana, XRP, Cardano, and TRX raising questions among traders about the potential start of an altcoin season.
Indicators for Altcoin Season
Market experts suggest that a true altcoin season has not yet begun. According to QCP Capital, altcoins tend to perform better during consolidation periods following significant rallies in Bitcoin and Ethereum. Currently, Bitcoin dominance stands at 60%, and analysts assert that for an altcoin season to be confirmed, this percentage needs to drop below 58%. Solana, in particular, caught attention with a 17% rise, maintaining the $240 price level.
Ethereum's Role in Altcoin Rally
Ethereum’s price has yet to reach expected levels, peaking at $3,444 in early November before pulling back 10%. Analysts emphasize that Ethereum finds strong support at the $3,000 mark, which could provide price support. Recent interest from institutional investors and the increasing demand for spot Ethereum ETFs further fuel expectations.
Future of Altcoin Market
Recent interest from institutional investors and potential positive crypto policy changes could reignite interest in altcoins, especially if Donald Trump returns to politics. Ethereum's support levels and Bitcoin's upward trend remain fundamental indicators for a potential altcoin season. Traders continue monitoring market conditions and Ethereum’s performance closely.
The current market situation and strong performances of Bitcoin and Ethereum serve as preconditions for a possible new altcoin season. Traders are expected to keep a close eye on market developments.
