Is The Altcoin Market Gearing Up For A New Rally?

According to information gathered from three different indicators by crypto traders, the altcoin market is currently in a "state of disbelief," and if history repeats itself, it could soon experience an "explosive rally."

Crypto analyst Mikybull Crypto, in a post shared with his 66,600 followers, stated, "The total altcoin market value is currently in a state of disbelief, and historically, this stage has been followed by an explosive rally."

This state of disbelief is attributed to a 24-point decrease observed in the Crypto Fear and Greed Index over the past 30 days, indicating investors' skepticism despite positive market indicators. The current "Greed" score stands at 56.

According to TradingView data, the total market value of altcoins outside the top ten cryptocurrencies has dropped by 17.55 percent over the last 30 days, reaching $264.9 billion. This figure remains above the $250 billion support level.

Additionally, in a post on May 12th, Rekt Capital expressed to his 465,300 followers that altcoins are "positioning themselves for an upward move in the future."

Investors are using three different indicators to predict the future direction of the altcoin market: the 20-day exponential moving average (EMA), the stochastic relative strength index (RSI), and Bitcoin dominance.

According to crypto phenomenon Titan of Crypto, if the total cryptocurrency market value "retests" the EMA20 and experiences an "upward move" in the stochastic RSI indicator, it could trigger a "rally."

Bitcoin dominance, one of the oldest and most frequently referenced indicators, measures Bitcoin's overall market share in the cryptocurrency market. This indicator provides investors with an opportunity to understand overall investor sentiment and risk appetite in the market.

As of now, Bitcoin's market dominance has dropped to 54.7% with a 0.56% decrease last week. An anonymous technical analyst, Yooda, claimed in a post on May 11th on the X platform, "After this decrease, an altcoin rally could begin."

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