- Despite the recent volatility and short-term pullbacks, altcoins are continuing to show a strong bullish divergence which demonstrates underlying strength.
- According to analysts, dominance often retests historical support zones prior to move sustainability as well as multi-month bullish action.
- Historical data, including the 2020 crash, suggests that history is likely to repeat itself and trigger what could possibly be the next major uptrend in altcoins across crypto.
Altcoins are demonstrating considerable strength in the face of the recent market pullback as analysts indicate strong bullish divergences forming across the crypto markets. Indicators suggest an underlying uptrend may be taking place.
Bullish Divergence Signals Hidden Strength in Altcoins
According to market analyst Javon Marks, altcoins continue to maintain a Regular Bullish Divergence despite recent declines. His analysis focuses on the Crypto Total Market Cap Excluding Top 10 Dominance — a key measure showing the market share of altcoins compared to the largest cryptocurrencies.
The data reveals that while dominance charts have made lower lows, momentum indicators such as the RSI are forming higher lows. This pattern typically signals that underlying strength is accumulating even as prices appear weak. Marks noted that similar formations preceded major altcoin rallies during previous market cycles.
Historical comparisons show that these divergence structures have often led to multi-month uptrends. The repeated formation of higher lows reflects a strengthening long-term foundation for altcoins, suggesting that current conditions may represent early stages of another accumulation phase.
Analysts View the Recent Dip as a Setup for Recovery
The recent downturn, according to Marks, may not mark the start of a bearish phase but rather a correction within an ongoing structural recovery. He observed that altcoin dominance has approached historical support levels — zones that have previously triggered strong reversals in prior market cycles.
Every test of these lower boundaries in past years has led to considerable upward momentum. This trend points toward a potential repeat, with the latest decline possibly serving as a final shakeout before broader recovery begins. Marks emphasized that these setups tend to appear before the market repositions for renewed growth.
Momentum readings also support this narrative, showing that buying strength is quietly building. This behavior indicates that long-term investors might be accumulating positions, anticipating that dominance could climb back toward 10–12% if historical trends hold true.
Historical Parallels Hint at a Possible Altcoin Revival
Analyst Ash Crypto added context by recalling the last time altcoins experienced a steep decline — during the March 2020 market crash. That period saw a single-day 50% drop in altcoin valuations, followed by the explosive Altseason of 2021.
The most recent correction in the market has indicated a similar 50% retracement and this shows that a similar setup may be brewing. Ash pointed out that history has a tendency to repeat in cryptocurrency cycles whereby severe declines often reset valuations ahead of rallies.
Both analysts point to the ongoing bullish divergence in altcoins which indicates a strengthening momentum even during weak, shorter price action. If the market structure continues to conform to market cycles we are now simply in a resting place, setting the stage for the next large rally in altcoins.
