Analysts Forecast Major Upswing for Leading Altcoins as BTC Dominance Falls
Altcoins may be gearing up for a bull run as Bitcoin (BTC) appears to be stabilizing above $30,000. Optimism around alternative cryptocurrencies is growing, particularly since most of the top 20 altcoins have held steady despite Bitcoin’s recent pullback.
Ethereum (ETH), for example, has recovered above $1,000 and could target a new all-time high well above its previous peak of $1,432. Ripple (XRP) remains around $0.30 after enduring heavy selling pressure, while other major altcoins such as Stellar (XLM), Cardano (ADA), and Litecoin (LTC) look resilient.
Among DeFi tokens, Synthetix (SNX), Aave (AAVE), Maker (MKR), and Compound (COMP) have posted double-digit gains over the past 24 hours, accompanied by sharply rising volumes.
As altcoins prepare for a potential large-scale rally, BTC dominance is contracting after running into resistance. Weekly RSI and MACD indicators suggest bearish divergence. If Bitcoin’s price moves sideways, altcoin momentum could push the total altcoin market capitalization toward highs near $550 billion.
Crypto analyst Michael van de Poppe notes that recovery is likely so long as the altcoin market cap holds its main support near $200 billion.
“The altcoin market cap looks very healthy here. For now we should find support in the $200 billion area. As long as that holds, the next altcoin run will take the market to $440–$550 billion.”
Weekly chart of the altcoin market capitalization. Source: Michael van de Poppe
Key resistance sits at the 161.8% Fibonacci retracement level of the prior move from a low of $120 billion to a high of $362 billion. This barrier is around $319 billion and represents a critical level that altcoins must clear to sustain an upward trend.
A strong impulse wave from current levels could propel the altcoin index up to the 261.8% Fibonacci level near $439 billion.
Beyond the previously mentioned coins, ICON (ICX) is another asset to watch. According to the analyst, “Icon still looks good here, printing higher highs and higher lows. The crucial support at $0.30–$0.35 was held. Therefore, continuation is expected. New impulse wave targets are $1.00–$1.20 and $1.60–$1.80, likely during the upcoming alt season.”
ICX/USD daily price chart. Source: TradingView
At the time of writing, ICX/USD traded at $0.59, down about 2.4% in the past 24 hours.