Crypto markets have held on to gains over the weekend, but it is altcoins that have outperformed their bigger brethren over the past few days.
Altcoins have made more progress than the high-cap crypto assets over the past few days as markets show further signs of recovery.
This has led to renewed calls for altseason from industry analysts and observers. However, they may be a little premature as the big boys usually peak first.
When Altseason?
On Aug. 26, technical analyst ‘Rekt Capital’ observed that there were several “bullish divergences” on altcoins. He added that these were also “facilitating the development of early-stage market structures” and potential future breakout patterns.” A bullish divergence is a technical chart pattern that signals a potential price reversal.
Meanwhile, on Aug. 25, trader and analyst ‘Mags’ declared that altseason was incoming following several months of downward and sideways action. Similar ‘chopsolidation’ has preceded altcoin breakouts in previous market cycles.
‘Ash Crypto’ explained to his 1.1 million X followers that there were a number of phases to altseason.
He noted that the first phase starts before the halving when altcoins begin to rally just before Bitcoin halves. The second phase is a pause and pullback, which is what we have seen since the halving and where things are currently.
Following these two is a parabolic stage, where there are big gains over a short period of time. The analyst predicted altseason to begin later this year.
Several altcoins have outpaced Bitcoin’s growth over the past seven days, notching up double-digit gains. These include Solana (SOL, 12.3%), Tron (TRX, 23%), Cardano (ADA, 15%), Avalanche (AVAX, 30%), and Chainlink (LINK, 21%).
Additionally, artificial intelligence-based assets have also been on fire, posting even greater gains. Some top AI performers over the past week include Near Protocol (NEAR, 26%), Artificial Superintelligence Alliance (FET, 65%), Bittensor (TAO, 25%), and Render (RENDER, 43%).
The big move for AI tokens comes as markets anticipate the second quarterly revenue report from tech and AI giant Nvidia, which is due on Wednesday.
Bitcoin Dominance Resistance
Moreover, Bitcoin market dominance was recently rejected from a major resistance level, which could mean an altcoin rally is imminent.
BTC dominance is currently 57.43%, according to Tradingview, and it has been trending higher since November 2022. However, it hit resistance earlier this month and is approaching similar levels again.
