Aren’t altcoins dead? Analyst says ‘spring is charging’

Aren’t altcoins dead? Analyst says ‘spring is charging’

A technical perspective shared by cryptanalyst Cryptollica contradicts the belief that the era of altcoins is over. This perspective is based on the view that the current environment may have less to do with decline and more to do with preparation.

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The structure of a decade is in the rotation zone

Bitcoin and other large-cap cryptocurrencies are dominating the market’s attentionand many merchants altcoins have been canceled like a lost cause. Prolonged poor performance, fading arguments, and months of lateral action have led to the belief that the era of altcoins is over.

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Referring to social media platform

According to the analyst, This ratio is now directly above trend support that has held for almost a decade. Interestingly, the long-term chart shared by the analyst shows repeated historical interactions with this ascending channel, where previous touches of the lower bound led to major rotations towards altcoins.

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At the time of writing, the OTHERS/BTC ratio has been compressing for the past few months without any clear sign of a directional breakout. Altcoin dominance has been falling within an increasingly tight range, approaching the lower trend line as volatility continues to deplete.

However, instead of interpreting the current compression as weakness, the analyst noted that the price is respecting a decade-long geometric structure without a breakout. Cryptollica described this configuration not as a graveyard but as a rotation point rather than a graveyard. Therefore, traders declaring altcoins dead are reacting to fatigue, not structure. The market is behaving like a loaded spring and store energy.

Momentum Indicators Quietly Turn in Altcoins’ Favor

A separate analysis of the OTHERS/BTC ratio shows that boxes may already be ticking beneath the surface for an altcoin season. Crypto Analyst Ash Crypto pointed out that the month The MACD on the OTHERS/BTC chart just closed in green twice in a row for the first time in four years.

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Not only that, but the bullish Others/BTC MACD cross has now been confirmed. History shows that this type of signal has always corresponded to the early stages of altcoin recovery, especially when it appears after long periods of underperformance.

Ash Crypto also noted that the ISM index broke back above the 50% level as another bullish sign for altcoins. This ISM pullback above 50% is notable because this macro indicator has repeatedly coincided with improving conditions for altcoins in previous cycles.

Confirmation of momentum in OTHERS/BTC and a hold above decade-old support strengthens the case that the current altcoin pause may be less about weakness and more about forward positioning. for an upcoming altcoin season.

Altcoin
Overall market capitalization, excluding BTC, of ​​$1.04 trillion on 1D chart | Source: TOTAL2 in Tradingview.com

Featured image from Pixabay, chart from Tradingview.com

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