Analysts are once again speculating about the start of “alt season” following a notable increase in the total market capitalization of altcoins.
This includes Ether (ETH), which has been a key player in recent market movements.
Crypto traders have turned their attention to altcoins after Ether’s impressive 27% gain over the past week.
The total market capitalization of altcoins now stands at approximately $1.16 trillion, marking a 15% increase over the last two weeks. According to TradingView, this surge is bringing the market cap close to the resistance levels seen in mid-March, when it peaked at $1.2 trillion.
On May 26, ‘Trader Tardigrade’ informed his 50,000 followers on X that the altcoin market might triple its total market cap if it breaks out from an “inverse head-and-shoulders pattern.”
They added,
“It is expected to break out in a few weeks’ time according to this pattern.”
Similarly, on May 26, trader and analyst ‘Rekt Capital’ noted that the altcoin market cap is on track to achieve its highest weekly close since early April 2024.
Technical
X users ‘Yoddha’ (@CryptoYodha) and ‘Moustache’ (@el_crypto_prof) also echoed this sentiment, with @CryptoYodha stating,
“Expect some insane pump in alts when this breaks above the weekly resistance.”
MN Trading founder Michaël van de Poppe noted in an X post on May 25 that the recent market correction, which was around 25%, involved a 50-70% correction for altcoins. He projected that this cycle could see the total market capitalization reach $15 trillion, a 450% increase from the current $2.7 trillion.
In Poppe’s words: “The total market capitalization of #Crypto is consolidating after a 25% correction. This correction entails a 50-70% correction on Altcoins. Probably some more consolidation before a clean break of the all-time high. This cycle, I’ll see the total market cap going to $15T.”
Disclaimer: This report is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
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