Speculation is mounting once again about the possibility of altseason, as the total market capitalization of altcoins, including Ether (ETH), has experienced a significant surge and is now nearing a key resistance level.
Over the past seven days, Ether has recorded a 27% gain, catching the attention of crypto traders and analysts. The current total market capitalization of altcoins stands at around $1.16 trillion, as reported by TradingView. This represents a 15% increase over the past two weeks and brings it closer to the resistance levels seen in mid-March, when it reached $1.2 trillion.
On May 26, a trader known as ‘Trader Tardigrade’ shared with their 50,000 followers on X that the altcoin market could potentially surge up to three times its current market cap if it successfully breaks out from an “inverse head-and-shoulders pattern.” They added that this breakout is expected to occur in a few weeks’ time, based on the pattern analysis.
Trader and analyst ‘Rekt Capital’ noted on May 26 that the altcoin market cap is on track to achieve its highest weekly close since early April 2024. Similarly, technical analyst ‘Yoddha’ predicted on X that there would be a significant pump in altcoins once they break above the weekly resistance level.
Another analyst, ‘Moustache,’ shared a similar chart with their 120,000 followers on X, stating that altseason is just around the corner.
Analysts have also observed that in previous market cycles, Bitcoin prices typically led the way, followed by Ether, and finally, the altcoin markets. This pattern occurs as capital flows down the chain into lower-cap coins. The decline in Bitcoin market dominance by 3.7% over the past two weeks to 53.9% further supports the notion of a strengthening altcoin market.
In a post on X on May 25, Michaël van de Poppe, the founder of MN Trading, noted that during the recent market correction, which saw a 25% decrease, altcoins experienced a correction of 50-70%. He predicts that in this cycle, the total market capitalization will reach $15 trillion, marking a 450% increase from the current levels of $2.7 trillion.
According to CoinGecko, the total crypto capitalization has been range-bound for the past three months, fluctuating between $2.9 trillion in mid-March and a low of $2.3 trillion on May 1.
In the world of crypto, the battle between regulatory bodies, such as the SEC, and the legal firepower of the crypto industry is likened to the fierce clash between Godzilla and Kong.