The likelihood of a strong altseason has increased as the Bitcoin price has risen. Furthermore, growing Bitcoin dominance fueled expectations, which appear to be becoming viable as altcoins continue to gain momentum. Currently, dominance has reached a level of approximately 60% from the point at which the famous 2021 bull run was initiated. While the possibility exists that the dominance will peak above 73%, the possibility of a collapse has also emerged, which could lead to a strong and the greatest Alt season of all time.
The chart above shows the dominance of ETH/BTC and BTC; both have a trend reversal point and therefore a big move can be expected at any time. The ETH/BTC is ready to take flight while the BTC.D is close and is rejected from the top of the rising wedge. However, the market capitalization of altcoins is still lagging behind; therefore, an extended BTC price rally to levels above $85,000 to $88,000 could spark a strong altseason.
When does the Alt season start?
The memecoins, RWAs, L1 & L2, etc. have been showing tremendous strength since the beginning of the year. While memecoins like GOAT, GRASS, POPCAT, etc. are making huge noise, Ethena and Raydium have marked themselves as the biggest weekly winners, with gains of over 50% to 60%. After the recent jump of over 50%, ENA price seems to expect a 100% jump to complete the parabolic recovery.
With the latest surge, Ethena price surpassed the crucial resistance zone around USD 0.44 and further broke the crucial USD 0.5 level. The levels remain within a rising expanding wedge and are approaching upper resistance. The RSI has reached the upper limit and may witness a pullback. However, the levels continue to move along the rising trendline, which acts as strong support. Therefore, ENA price is expected to rise above $0.62, face a small pullback near $0.52 and further lead to a recovery towards $0.92, paving the way to cross the $1 to reach.
Furthermore, Raydium’s price has been hitting new yearly highs every day, aiming to reach double-digit numbers at the earliest.
The RAY price remained dormant for almost a few years and caused a huge increase since the beginning of the year. The token has formed consecutive higher highs and lows, reflecting the growing strength of the bulls. Volume is trying to initiate a parabolic recovery, while the RSI has broken above the descending trendline. Therefore, the volume pattern suggests that the price could continue to hold the rising trendline, test the higher targets mentioned above, and ultimately reach double-digit levels soon.
The altcoins are gaining strength and therefore, with the increase in their strength, a strong altseason can begin.