While the global crypto market cap traded at $2.6 trillion after a 0.26% decline in the past 24 hours, the altcoin market cap stood at $182.83 billion at press time. According to reports from AMBCrypto, analysts are calling for an altcoin season, with Michaël van de Poppe, CIO & Founder of MN Fund, stating that the market sentiment is improving and an altcoin season is "definitely possible." However, van de Poppe cautioned that there won't be a "full-blown altcoin run," but many altcoins that have been in a prolonged bear market for about 18 months will witness a profitable rally in the short term.
Echoing similar sentiments, another analyst highlighted the importance of focusing on the TOTAL2 (total crypto market cap minus Bitcoin) chart, noting it as "the most underrated Altcoin-Chart out there." As reported by AMBCrypto, this analyst drew comparisons with past altcoin seasons in 2016/2017 and 2020/2021, believing that current price action is a lookalike of the accumulation phase before previous altseasons. The analyst also used Tether [USDT] dominance to indicate that money may soon be diverted from stablecoins into altcoins, as Tether dominance has been rejected at resistance.
Despite analyst optimism, the CoinMarketCap Altcoin Season Index was at 39 at the time of writing, which is 11 index points less than the level needed to confirm an upcoming altcoin season. According to AMBCrypto, the altcoin season index was only able to reach above 50 for a brief period in March, as evidenced by the 90-day chart. Additionally, the CEX Volume Ratio for Non-BTC vs. BTC by CryptoQuant indicates that the altcoin season remains uncertain, with the absence of Green Buy Walls suggesting a short-term altcoin bull run may not be sustainable.
The Percentage of Altcoins near their All-Time Lows chart by CryptoQuant reveals concerning market conditions, with nearly 30% of the entire altcoin market currently hovering near its all-time lows. As reported by AMBCrypto, until the pink area starts shrinking, altcoin season remains a distant dream. However, the analysis suggests that if an altcoin season does occur, it could be broader than past cycles, potentially offering more opportunities for altcoin investors.
