Speculation about an upcoming altcoin season has persisted within the crypto community throughout the year, despite many altcoins struggling to maintain bullish momentum recently. A market intelligence firm now forecasts that altcoins could outperform Bitcoin in the coming months.
On June 14, on-chain analytics platform Alphractal shared on X that altcoins may be on the cusp of significant movement. The prediction hinges on the Altcoin Dominance metric approaching a historically important support level.
Alphractal analyzed two Altcoin Dominance metrics: one excluding stablecoins, and another excluding both stablecoins and Ethereum. The first metric has historically found strong support near 25%, a threshold that often precedes major altcoin rallies.
In previous cycles, this metric dropped to about 25% before rebounding to near 35% in 2020, and fell to 24% before surging above 50% in 2021 during the last notable altseason. Currently, the metric stands at approximately 27.91%, suggesting a potential reversal and significant altcoin activity soon.
The second metric, excluding Ethereum and stablecoins, has a critical support around 18%. Falling below this level has historically correlated with substantial price gains for altcoins relative to Bitcoin.
These trends indicate the market may experience increased volatility shortly. Alphractal noted that many altcoins could outperform Bitcoin regardless of whether Bitcoin’s price rises or declines.
“These levels don’t guarantee the start of an Altcoin Season, but they’ve proven to be meaningful signals with a strong historical probability of leading to major market moves,” the firm stated.
Ethereum remains the second-largest cryptocurrency by market cap, valued at over $302 billion. At the time of writing, ETH is trading around $2,504, down 1.6% in the past 24 hours.
This analysis underscores the potential for altcoins to gain prominence in the coming months, signaling a possible shift in market dynamics beyond Bitcoin’s dominance.