- Altcoin Season Index Falls Below 20 Mark
- Bullish RSI Divergence Forms Across Charts
- Traders Eye ETF Boost, Fed Pivot for Rebound
The altcoin market has seen a sharp correction in early 2025, with several leading tokens posting double-digit losses. Despite this downturn, new technical signals suggest a possible reversal could be on the horizon. A confirmed bullish divergence between RSI and price action points to potential recovery, especially as prices approach strong support zones.
Altcoin Dominance Signals a Possible Shift
According to an analysis prepared by CryptoElites, Bitcoin dominance has increased to 59.1%, while the altcoin season index has dropped below 20. Historically, these conditions have preceded sharp moves in altcoins.
The current index position, according to The Moon Show on X, is near historical lows often followed by large rallies.While many altcoins underperformed in Q1 2025, market watchers are closely monitoring the RSI divergence forming on several altcoin charts.
A confirmed divergence, when combined with oversold RSI values and strong support levels, often suggests that the downward trend could be weakening. For example, VeChain (VET) showed a bullish RSI divergence despite an 8% drop on April 16, according to data from CoinMarketCap.
Analysts Expect a Recovery Based on Macro Trends
According to an observation by Crypto Rover on April 17, 2025, the market is likely preparing for a wider altcoin breakout. He forecasted a 100x surge for select altcoins if market sentiment improves. The prediction sparked an immediate market response, with Bitcoin and Ethereum gaining over 2% in under an hour and altcoins like Cardano and Solana also rising.
Macro indicators may also support this view. Analysts believe that potential interest rate cuts, central bank quantitative easing, and anticipated approvals for altcoin ETFs could bring capital back into alternative tokens.
“Altcoins are at their most attractive levels in years,” said a crypto strategist in an April 17 Binance Markets Note. The sentiment is shared widely among traders expecting the Fed to pivot and regulate to support digital assets.
