- Altcoin market cap consolidates above $900B while USDT dominance weakens, signaling strong midterm bullish momentum building.
- USDT dominance remains below a key descending trendline from 2023, suggesting risk-on rotation favoring altcoins continues strongly.
- Altcoins maintaina position above the 200 MA with higher lows forming, reflecting sustained investor confidence and breakout potential.
Altcoins are flashing bullish signals as technical indicators across multiple charts reveal a potential market shift. USDT dominance continues its downward trajectory, reinforcing a risk-on sentiment across the crypto space. Meanwhile, the total cryptocurrency market cap excluding Bitcoin has consolidated above the 200-period moving average. This dual confirmation provides a strong bullish narrative for altcoins as the market enters Q2 2025. Currently, the altcoin market cap holds firm near $971 billion, reflecting a resilient stance after a sharp correction from the late-2024 highs.
Besides, USDT dominance has failed to reclaim its long-standing descending trendline from 2023. This persistent weakness in stablecoin dominance often implies capital rotation into higher-risk assets like altcoins. Repeated rejections from resistance levels near 5.5% highlight continued bearish pressure. Several resistance points have formed along this trendline since 2023. A black arrow on the chart projects a potential decline toward the 3.8% support zone, reinforcing bearish continuation.
MA200 Holds as Altcoin Market Builds Higher Lows
Moreover, the altcoin market has respected the 200-period moving average throughout multiple cycles since 2022. The first major peak near $1.6 trillion in early 2022 led to a significant drawdown. Market cap dropped to around $450 billion by mid-2022. However, the price stabilized during late 2022 and early 2023, creating a solid base. Hence, the breakout above the MA200 in late 2023 triggered a strong rally. The second peak in mid-2024 even surpassed the 2022 highs, marking a long-term higher high.
Additionally, current price action consolidates above the $900 billion support zone. This behavior indicates strong investor confidence despite recent volatility. Weekly candles show compressed movement inside a defined box range. Consequently, this structure suggests a pause before the next major move. An upward arrow points toward a potential breakout. If momentum continues, the altcoin market may reclaim the $1.7 trillion level in the midterm.
USDT Dominance Breakdown Supports Altcoin Surge
However, the narrative strengthens further as stablecoin dominance deteriorates. Lower USDT dominance reduces bearish liquidity pressure on risk assets. Altcoins, therefore, benefit directly. Traders often view this trend as a green light for rotation into mid- and low-cap tokens. As USDT dominance nears 3.8%, altcoins stand primed for the next phase of bullish expansion.
