- Altcoin dominance shows a bullish MACD divergence since 2021, signaling a strong reversal potential backed by historical trendlines.
- TOTAL3 reclaims a key 18-month trendline while RSI shows a wedge breakout setup, pointing to a renewed altcoin momentum surge.
- Technical indicators and support levels near 8 percent dominance suggest undervalued altcoins could lead the next crypto breakout wave.
Altcoin market indicators are flashing major bullish signals following long-term resistance breakouts and key divergence patterns. CRYPTODAP and TOTAL3 highlight strong reversal potentials. These technical setups suggest a possible resurgence in altcoin momentum, especially after years of suppressed dominance and declining market share. Notably, altcoin dominance has hovered around 8% in early 2025, reflecting undervaluation across the broader altcoin sector.
MACD Divergence Hints at Shift in Trend
A detailed multi-year data published on TradingView by JavonTM1 reveals a regular bullish divergence forming on the MACD oscillator. This divergence stretches back to 2021, marking several touchpoints along a red descending trendline. Hence, the pattern builds a solid case for a market structure reversal. Moreover, price volatility from 2020 to 2024 carved a series of lower highs and lows. However, the momentum histogram now aligns with bullish price action. Consequently, this alignment supports the view that altcoins are primed for a upside breakout.
Besides, the large upward arrow on the chart projects a likely bullish trajectory. Additionally, this is backed by historical support levels near the 8% dominance range. The descending trendline has been repeatedly tested, and each rejection led to decreasing bearish momentum. The MACD lines now mirror early 2021’s bullish momentum—a time when altcoin dominance surged past 19%.
Altcoin Market Cap Eyes Key Resistance
el_crypto_prof’s offers another bullish narrative through the lens of TOTAL3, which excludes BTC and ETH from the market cap. This chart highlights an 18-month trendline that has recently been reclaimed. This support line connects price bottoms since early 2023. Moreover, the altcoin market continues to trade within an ascending channel, maintaining higher lows across the timeframe.
Furthermore, the RSI reveals a falling wedge pattern with a breakout target far above current levels. A yellow circle on the oscillator marks an inflection point near 39.38. This suggests a potential momentum reversal is in play. Hence, as price consolidates around $743 billion, a push back toward the $1 trillion mark remains likely.
