- Altcoin dominance ($OTHERS.D) shows a bullish divergence, signaling a potential breakout as volume surges near key support levels.
- TOTAL3’s falling wedge pattern suggests an imminent bullish reversal, with a potential 54% gain if resistance levels are broken.
- Strong support and rising buying pressure indicate Q2 2025 could mark a major turning point, setting the stage for an alt-season.
Altcoins are showing strong bullish signals, with market analysts pointing to a potential surge. A bullish divergence on altcoin dominance ($OTHERS.D) suggests a breakout, supported by volume increases. Historically, similar divergences have triggered major altcoin rallies. Besides, market structure indicates a reversal, fueling hopes for an upcoming alt-season.
Bullish Divergence on Altcoin Dominance
JavonMarks highlights that $OTHERS.D is demonstrating a bullish divergence. In early 2025, altcoin dominance formed a lower low, while the RSI trended higher. This signals weakening bearish pressure and a potential upward reversal. Previously, a similar divergence led to a 66% surge in altcoin dominance.
Moreover, trading volume has been strong, supporting bullish sentiment. Historically, spikes in volume near support levels have preceded price surges. This current setup mirrors past conditions that ignited altcoin uptrends.
Additionally, the dominance chart displays an upward projection targeting 18.9%. This aligns with a key resistance level from 2022, where selling pressure intensified. A breakout above intermediate resistance levels could confirm the beginning of a bullish phase.
TOTAL3 Approaching a Wedge Breakout
CryptoFaibik notes that altcoins have been in a corrective phase since December. However, a falling wedge pattern on TOTAL3 (the total market cap excluding BTC and ETH) suggests a breakout is imminent.
TOTAL3 has been consolidating since late 2022. The market reached a peak near $900 billion before declining into a downward channel. Recently, it tested support near $700 billion and is now hovering at $772.68 billion.
A bullish reversal is hinted at by the wedge shape. Analysts predict a move toward $1.19 trillion, or a 54% gain, if TOTAL3 breaks out. Furthermore, decreasing volume and decreased volatility point to the imminence of a price change.
Altcoin Outlook for Q2 2025
Market sentiment is shifting as technical indicators favor a bullish scenario. Besides, strong support levels and increasing buying pressure reinforce the likelihood of a breakout. If the current trends persist, Q2 could mark a recovery phase for altcoins. Investors are advised to hold and accumulate rather than panic-sell. With a confirmed breakout, altcoins could reclaim lost ground, setting the stage for an explosive rally.
