Crypto Traders and Analysts Strengthen Arguments for Altseason

Currently, altcoins are experiencing another downturn while Bitcoin remains stable around the $109,000 mark, catching the attention of traders and market analysts alike.

Crypto influencer Lark Davis noted that altcoins seem to be unresponsive as Bitcoin rises, dips, and regains momentum. He expressed this observation on social media, highlighting the current state of the cryptocurrency landscape.

Indeed, many altcoins remain significantly below their all-time highs from the 2021 bull run, prompting speculation about the timing of the next altseason.

Anticipating an Upcoming Altseason

A consensus among crypto analysts and traders suggests that an altseason may be on the horizon, based on existing market trends.

On May 27, blockchain veteran Kyle Chassé remarked that this forthcoming altseason will be unprecedented, though he cautioned that it will differ from past events due to the overwhelming number of tokens in the market.

With Coingecko reporting over 17,000 different tokens and CoinMarketCap tracking an astonishing 16 million crypto assets, the majority are found to be low-value meme coins, particularly within networks like Solana and Base.

Chassé emphasized the need for investors to focus on tokens garnering interest, as those are likely to see the most financial activity.

In contrast, trader “Merlijn The Trader” shared with his extensive following that the upcoming altseason could dwarf the events of 2021, supported by chart analyses indicating strong patterns.

Although some doubters suggest waning interest in altcoins, the trader countered that institutional investment is poised to increase, especially towards projects with genuine utility.

“BTC dominance is on the verge of a significant drop,” stated crypto investor “Sensei,” while affirming that altseason is approaching.

A key indicator for the onset of altseason is the reduction in Bitcoin’s market dominance, which currently stands at 64.25%. This figure reached a peak of 65.4% on May 7, its highest since January 2021, but has since seen a slight decline, maintaining an upward trend since early 2023.

Altcoins Not Yet Set to Surge

Crypto trader “Moustache” also expressed similar views, suggesting that altcoins are poised for a parabolic rally akin to those seen in 2017 and 2021, as current chart patterns reflect prior cycles.

As it stands, many altcoins are suffering losses today, with substantial declines noted for assets like XRP, Solana, Hyperliquid, and Sui.

Despite the favorable chart patterns and bullish signals, it seems that altcoins are not quite primed for explosive growth just yet.