According to a new analysis from on-chain analytics firm Alphractal, the altcoin market may be approaching a breakout moment.
Key dominance metrics have reached historically significant support levels, often preceding strong altcoin outperformance relative to Bitcoin.
Two Key Metrics Flash Support Signals
Alphractal highlights two specific indicators that traders should watch closely:
- Altcoin Dominance (excluding Stablecoins) – Currently hovering near the 25% mark, this level has historically marked the bottom of market share for altcoins before sharp recoveries.
- Altcoin Dominance (excluding ETH and Stablecoins) – Sitting just above 18%, a level that, when tested or briefly breached, has previously triggered rapid rotations into lower-cap altcoins at Bitcoin’s expense.
These thresholds are not guarantees of an incoming altseason, but Alphractal notes that they’ve consistently acted as launch points for altcoin-led rallies over multiple market cycles.
What’s Next?
The firm 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—particularly if Bitcoin dominance begins to slip.
Key Takeaway
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. For crypto investors and traders, now may be the time to start paying close attention to the altcoin charts—and be ready for what could be a pivotal shift in market dynamics.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/altcoin-season-incoming-chart-hits-level-that-preceded-past-rallies/