- Altcoins beyond the TOP 200 market cap are all pumping short-term.
- The Golden Cross buy signal flashing for altcoins could see a pump of 92%+.
Analysis of the 24-hour price change of various cryptocurrencies, ranked by market cap, highlighted a surge in lesser-known altcoins which reflected the anticipated altseason.
Notably, BinaryX [BNX] topped with a significant percentage increase, indicating strong short-term performance.
Other prominent gainers like PancakeSwap [CAKE] and SPX6900 [SPX] also showed rises, reinforcing the notion of a budding altseason, where smaller cap coins outperform the market.
This trend was evident as many tokens outside the top 200 experienced substantial gains, suggesting a shift in trader focus towards more speculative assets.
Source: Alphractal
While this could indicate potential opportunities for high returns, it also indicated the volatility and risk associated with such investments.
If this trend continues, it could fuel a broader altseason, driving further interest and investment into lower-cap coins.
However, the volatile nature of such movements necessitates cautious optimism, as rapid gains can often precede equally swift corrections.
Golden Cross flashes ‘buy’
With the surge in major alts, the Golden Cross pattern in the altcoin market where the 100DMA decisively crossed above the 200DMA around early February 2025 suggested a potential uptrend.
Historically, this pattern has been a bullish signal, previously correlating with a substantial 92% increase in altcoin market valuations.
The last Golden Cross occurrence led to significant gains across major altcoins, driving the total market cap from approximately $710 Billion to a peak of around $1.36 Trillion.
Source: X
However, if regulatory changes, global economic downturns, or shifts in sentiment occur, the expected bullish impact of the Golden Cross might not fully materialize.
In adverse scenarios, despite the Golden Cross, altcoins could fail to sustain the rally or see only modest gains compared to previous cycles.
While the Golden Cross presents a potential buying opportunity, balancing the bullish indicators with the macroeconomics and market dynamics is key.
Traders should prepare for both possible appreciation and the risks of a downturn.
BTC divergence signals…
Additionally, in 2018 and 2021, altcoins showed notable recoveries and bull runs, with the market cap hitting the peak.
Presently, the market is observing a similar structure that could lead to an ascent towards a $5 trillion market cap if trends follow previous cycles.
This is after Bitcoin dominance saw a bearish divergence — the price peak and a lower peak on the RSI.
Historically, such divergence suggested a potential decline in Bitcoin’s market dominance, which often correlates with altcoin growth.
Source: TradingView
This pattern is a typical precursor to an ‘Altseason,’ a phase where altcoins outperform Bitcoin significantly.
However, while the declining dominance of BTC could indeed herald a booming altseason, market dynamics are complex.
Increased altcoin volatility and dependency on broader market sentiments can also lead to unpredicted shifts.
Remaining cautiously optimistic while monitoring both macroeconomic indicators and specific crypto fundamentals before making investment decisions is key.
