A decline in dominance while the altcoin season index surpassed 75%, indicating a potential market rotation
A breakout above the psychological resistance level of $4600 serves as a catalyst for increased broader interest in altcoins
Some tokens recording a daily increase of 20-25%, with patterns reminiscent of the peak of the previous altcoin season
High-volume breakouts appearing across several mid-cap assets, creating momentum-based opportunities
The core drivers
Declining inflation and expectations of interest rate cuts enhance the appetite for risk across digital assets
Capital flows from Bitcoin towards higher-yield alternative investments and Layer-2 systems
Attracting interest from institutional investors in Ethereum Layer-2 networks due to improved scalability and reduced costs
A 40% increase in engagement with the tag, reflecting high retail participation
Trading strategy recommendations
Monitoring the $4600 level as a vital support for; continued holding indicates sustained strength in altcoins
Focusing on high-volume Layer-2 tokens that show technical breakouts above key resistance levels
Applying tight stop-loss orders despite pessimism, as high volatility increases short-term risks
Considering volatility-based options strategies to capitalize on price fluctuations while managing exposure to risk
