Is the altcoin market facing an ‘explosive rally’? Analysts pay attention to these three indicators.

The altcoin market is currently in a ‘distrust phase’, and if history repeats itself, it could soon move into an ‘explosive rally’. Crypto traders are closely watching three technical indicators for confirmation.

“Altcoin market caps are currently in an incredible phase and have seen historically explosive gains,” cryptocurrency analyst Mikybull Crypto told his 66,600 X followers in a May 11 post.

The distrust stage is when investors remain skeptical despite positive market signs. This can be seen from the significant drop of 24 points in the Crypto Fear and Greed Index over the past 30 days. The current ‘Greed’ score is 56 points.

This means total altcoin market capitalization, excluding the top 10 cryptocurrencies, has fallen 17.55% over the past 30 days to $264.9 billion, TradingView data shows.

Nonetheless, it still remains well above $250 billion in support and is “positioning itself for further upside,” anonymous cryptocurrency trader Rekt Capital told his 465,300 X followers in a May 12 post.

Traders use three indicators across the broader cryptocurrency market to support their predictions about the direction of the altcoin market: the 20-day exponential moving average (EMA), the stochastic relative strength index (RSI), and Bitcoin dominance. We are watching.

EMA is the average price over that period, with greater weighting given to recent periods. This could lead to a “rally time” if the overall cryptocurrency market cap “retests” the EMA20 while also “crossing the bullish line,” which measures the relative strengths and weaknesses of the stochastic RSI indicator itself, said pseudonymous cryptocurrency trader Titan of Crypto. . on May 11th post.

Related: Altcoins will bottom in early summer before bull market — analyst

The Bitcoin Dominance chart, which measures Bitcoin’s market share relative to the overall cryptocurrency market, is one of the oldest yet most referenced indicators. This can provide traders with the overall sentiment and risk appetite of the market.

Bitcoin’s dominance at the time of publication was 54.7%, down 0.56% over the past week. On May 11, anonymous technical analyst Yoddha claimed, “If it falls further from here, alt season could begin.” post At X.

magazine: Buy altcoins now, but sell them before ‘mid-2025’: Charles Edwards, X Hall of Flame

This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.