- DXY hits long-term support after forming lower highs since 1985’s 165 peak.
- Altcoins flash bullish signals with two Golden Crosses in under a year.
- A DXY breakdown below 100 may fuel massive capital rotation into altcoins.
The US Dollar Index (DXY) is hanging on to a key support level that’s held strong for decades. If it finally gives way, it could be the spark that sends altcoins into a massive rally.
Breakdown Could Shift Market Dynamics
After hitting 165 in 1985,The US Dollar Index (DXY) has made lower highs — 119 in 2001 and 115 in 2022. At the same time, it’s also made higher lows, forming a large triangle pattern that has taken shape over nearly 50 years.
One of the most important parts of this pattern is a rising trendline that began at the 2008 low near 70. It’s been holding strong for over 15 years and now lines up with a major support zone around the 100 level.
According to data shared by Crypto Crew University on X, this zone represents a historical confluence that could dictate global risk appetite.
The DXY is currently trading just above 98.57. A firm break below this level would signal a technical breakdown of a long-standing support zone. Historically, such breaks in the DXY have coincided with massive liquidity shifts — often favoring risk-on assets like cryptocurrencies.
If the support fails, technical levels suggest possible downside targets at 89.97 and even 81.03 — levels not seen since before 2015. This could be the macro spark altcoins have been waiting for.
Altcoins Primed as Market Structure Flashes Bullish Signals
While the dollar weakens, the altcoin market is strengthening. According to CoinMarketCap and TradingView, altcoins excluding Bitcoin have shown strong signs of a macro uptrend.
Two Golden Crosses — when the 50-day moving average crosses above the 200-day — occurred in under 12 months, with the latest in July 2025. The last time this happened, the altcoin market cap surged from under $200B to over $420B. After a brief cooldown and consolidation, the latest cross triggered another leg higher.
This surge comes as altcoins break out from a multi-year descending wedge — a classic bullish reversal pattern. Market structure mirrors the 2016–2017 cycle, with a double bottom, mid-cycle correction, and the beginning of a powerful Impulse Wave 2 forming.
Tokens like Injective (INJ), AAVE, and TAO are gaining traction, Ethereum remains consolidated, possibly preparing for a breakout of its own.
A Rare Macro Setup: Altseason on the Horizon?
The alignment between a weakening dollar and strengthening altcoin market is rare — and powerful. A breakdown in the DXY’s 15-year trendline could represent a major capital rotation moment, shifting liquidity from the traditional financial system into digital assets.
This isn’t just a technical story — it’s macro. Historical DXY breakdowns have signaled weaker dollar demand, opening the door for alternative assets like gold and crypto to flourish. With the current setup echoing past cycles, many traders are watching closely.
The catalyst is clear: if DXY loses the 100 mark, and the yellow trendline snaps, the door may swing wide open for a full-fledged Altseason — one that could rival 2017 or even surpass it.The charts don’t lie — and right now, both legacy markets and crypto are converging at a moment that could shape the next chapter in financial markets.
