Altcoin market cap hits $1.03T, approaching $1.18T resistance last seen in 2021, signaling potential for a breakout or pullback.
BTC dominance drops to 61.02% as ETH/BTC rises and Altcoin Season Index climbs, showing increased tactical altcoin exposure.
Altcoin perpetuals open interest hits $773B; SUI, BONK, and AI tokens lead sector gains, fueling speculative momentum.
The total altcoin market cap, excluding Bitcoin and Ethereum, is approaching a key resistance zone not seen since 2021. At press time, the market cap was at $1.03 trillion, gaining by 1.51% over the past 24 hours.
This level is a strong recovery from the multi month consolidation range of $400B to $600B in 2023. Market outlook indicates a steady uptrend since early 2024, following a prolonged correction throughout 2022.
However, a major horizontal resistance is lingering at around $1.18 trillion. This is the level at which sharp rejections have taken place previously, particularly in late 2021 and early 2022.
Resistance Level Faces Retest
The altcoin market is once again testing the $1.18 trillion top, which has proven tough to break in the past. A breakout above this level could change market outlook and suggest rising capital inflow into altcoins.
Crypto Total Market Cap Excluding BTC and ETH 1-day price chart, Source Lark Davis
Based on near-term market action, there are buyers driving sharp advances even in the absence of any seemingly visible volume numbers. Analysts would attribute the buying pressure to rebounding retail and institutional demand.
Should the resistance be sticky, then the market can revert to previous support in the area of $900B to $950B. This support area has acted as a base over past declines and is a key area of fresh accumulation.
Bitcoin Dominance Falls as Traders Eye Alts
Bitcoin market dominance fell to 61.02%, dropping by 2.76% over the past week. This decline coincided with a rise in the Altcoin Season Index, which increased from 27 to 39 out of 100.
Despite the movement, the index is below the key 75 level. The ETH/BTC pair also indicated the same trend, with Ethereum increasing by 19.98% in the last week compared to Bitcoin 0.53% increase. These fluctuations show rising risk tolerance among traders but not an actual altcoin breakout.
Sector Based Rallies and Derivatives Suggest Speculation
Specific sectors are driving most of the altcoin activity rather than uniform gains across the board. The SUI market, led by BTCFi integrations, saw its total value locked exceed $300 million.
This helped SUI increase by 10.89%, while BONK surged by 45.26% over the past seven days. Meanwhile, Virtuals Protocol, tied to AI trading tools, has spiked by 203% over the past 90 days.
Derivative markets show increased speculative activity. Altcoin perpetuals open interest rose by 6.2% to $773 billion in one day. The funding rate spread between altcoins and Bitcoin also widened, showing rising interest in alt focused leverage. Futures volume for mid cap assets like XRP jumped by 31%, with XRP gaining by 27.74% on the week.
Altcoin activity continues to grow across spot and derivatives markets, while Bitcoin retains macro dominance above 60%. The approaching resistance at $1.18 trillion will likely decide if altcoins maintain momentum or face renewed correction.
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