The cryptocurrency market is undergoing a significant shift: Bitcoin's dominance has recently dropped to a six-month low, a key signal that has intensified discussions about the 'altcoin season'. Meanwhile, Bitcoin itself is stuck in consolidation, XRP is targeting highs with a technical breakout, while FARTCOIN has faced a major decline, presenting a multidimensional divergence in the market.
Bitcoin's dominance is declining, and the 'Altcoin Season' may begin
Bitcoin's share in the total cryptocurrency market (dominance) has dropped from 61.7% a week ago to 59.4%. This change releases important market signals:
• Clear capital transfer: Investors may be reallocating Bitcoin profits towards altcoins in search of higher returns;
• Risk appetite is rising: market interest in small-cap, high-volatility assets is increasing;
• Market maturation: Altcoins are gaining more attention due to technological innovation and real-world use cases.
Historical data shows that a decline in Bitcoin's dominance often signals outperformance of altcoins, with previous cycles witnessing rapid appreciation and surges in trading volume for altcoins. Current indicators align with historical trends, and analysts are closely monitoring signs of continued altcoin rallies.
#Bitcoin consolidates waiting for a breakout, with $120,000 as a key level
Bitcoin's price enters correction below $121,200, currently trading above $118,000, holding above the 100-hour simple moving average.
Technical indicators show:
• Support and Resistance: The hourly chart forms a bullish trend line, with support at $118,600; direct resistance at $120,000, and key resistance zone between $120,250 - $120,850. A breakout above $120,850 could test $122,250, or even push towards $125,000.
• Downside risk: If resistance is not broken, the support level at $118,600 is crucial; a break could lead to a drop to $117,800, or even the major support at $113,500.
#XRP breaks through a multi-year triangle, targeting a price of $12.6
Analyst Ali Martinez noted that XRP's weekly chart completed a symmetrical triangle breakout from 2018-2024
with a slight upward tilt, initiating a bullish rebound. According to the triangle breakout rule, the price volatility may equal the distance at the widest part of the pattern, with a target price locked in at $12.6 —
representing a potential increase of 287% from the current price (around $3.25).
XRP recently rose to $3.37, then fell back to $3.25, and now needs to observe the continuation of trends after the breakout.
#FARTCOIN down 21% facing liquidity outflow, demand zone becomes key for rebound
FARTCOIN has dropped 21% in the past 24 hours, with community bullish sentiment falling from 70% to 62.5%. A total of $91 million has flowed out of the spot and derivatives markets:
• Derivatives Market: Open interest decreased by 12% to $743 million, with $10.55 million in positions liquidated;
• Capital Shift: Charts indicate that liquidity may be flowing towards PUMP, but this has yet to be confirmed by on-chain data.
From a technical perspective, FARTCOIN has entered a critical demand zone between $0.8070 - $0.9063, which has historically triggered rebounds four times. However, if it falls below $0.8070, the chances of a rebound decrease.
The current RSI (36.31) and MACD (-0.0805) are in the bearish zone, requiring indicators to turn in order to enhance recovery expectations.
In conclusion: Opportunities and risks in a diverging market
Bitcoin's declining dominance paves the way for an altcoin season, but caution is warranted regarding altcoins' high volatility and selection difficulty; Bitcoin is consolidating while waiting for a breakout, with key price levels determining the short-term direction; XRP's technical breakthrough opens up upward space, while FARTCOIN depends on whether the demand zone can hold. For investors, in-depth research, diversified positioning, and risk control remain core strategies to navigate the current diverging market.