Altcoin dominance has shown a potential turnaround as it bounces off a key historical trendline. This pattern mirrors similar occurrences in 2018 and 2022, which were followed by significant altcoin rallies.
According to analyst Bitcoinsensus, the altcoin market could be poised for another major run, particularly with the dominance of altcoins rising. The trendline bounce suggests that altcoins may soon outpace Bitcoin and regain market share.
Bitcoin’s dominance has been a dominant force in the market for some time. However, historical trends suggest that when altcoin dominance bounces off the trendline, as seen in the chart, a phase of altcoin growth may be on the horizon.
RSI Breakout Indicates Momentum Shift for Altcoins
The Relative Strength Index (RSI) has also shown signs of a significant shift, breaking a multi-year downtrend. The RSI’s breakout is viewed as a key indicator of momentum changes, signaling that altcoins may soon enter a new bullish phase.
When the RSI breaks downtrends, it often marks a turning point, suggesting increasing buying pressure and positive momentum for the asset class.
As the market reacts to this shift, the chart predicts that altcoins could experience a major surge through 2026. This potential altcoin season, marked by increasing dominance and the RSI’s upward movement, could lead to a significant rally for altcoins.