Altseason Prediction: Market Setup Signals 50% Altcoin Rally

Capital Rotation and Chart Patterns Fuel 2025 Altseason

Altcoins, as analysts suggest through charts, are poised for a major breakout. Across multiple indicators, the broader asset class appears to be shifting momentum after a prolonged period of underperformance against Bitcoin, the largest crypto. At the time of reporting, the alt-market cap excluding the two largest networks is hovering near $900 billion, signalling a critical moment for risk-oriented tokens.

Additionally, analyst Mikybull on the monthly chart for altcoins showed the descending wedge pattern, a formation associated with trend reversals. This pattern is comparable to previous configurations that led to notable growth in non-BTC markets in 2017 and 2021.

OTHERSBTC 1M CHART | SOURCE: X

Concurrently, the RSI is forming a base in the oversold territory, and the MACD's signal line is curling upward, suggesting that accumulation is beginning and selling momentum is waning.

Capital Rotation Fuels Hope for 2025 Altseason

Analyst Crypto GEMs on the weekly chart for assets excluding BTC and ETH, highlighted three historic cycles of accumulation followed by massive gains. According to the analyst, the current phase, spanning 2024–2025, is setting the stage for a potential expansion greater than prior ones. This view suggests that the crypto market could move through another wave of rotation into smaller tokens, provided the structure holds and market sentiment aligns.

TOTAL3 1W CHART | SOURCE: X

The macro context, besides structure, facilitates the rotation of capital from major coins into alts. Liquidity appears ready to trickle down the cap ladder as the leading assets level off and risk appetite returns. Participation beyond the top coins is clear if dominance metrics keep shifting and the total cap of smaller tokens starts a steady breakout above important resistance zones.

If the breakout confirms, these setups position the alt-market for potentially significant upside. Investors should keep an eye out for confirmation above important resistance levels in consistent volume and momentum. The next stage of smaller-cap cryptocurrency performance could start when structure, sentiment, and liquidity all align.