Bitcoin is currently experiencing obstacles as it aims for the $100,000 milestone, which could result in a period of market consolidation. This situation has reignited enthusiasm in the altcoin sector. Traders saw significant gains from altcoins in 2021 when Bitcoin temporarily slowed down, and a similar pattern might emerge in this cycle.
With traders optimistic about potential price surges, we take a closer look at key altcoins that might rise if Bitcoin takes a pause. Our analysis focuses on five prominent altcoins from the 2021 bull market that exhibit promising signs of moving higher this cycle.
Bitcoin’s Market Share Declines, Boosting Altcoins
Bitcoin’s market share peaked at 61.53% on November 18, 2024, the highest since 2021. However, it has since dropped to 58.97% as of November 26, 2024.
A decrease in Bitcoin’s dominance typically signals a transition of capital towards altcoins, potentially triggering an altcoin season, wherein at least 75% of cryptocurrencies outperform Bitcoin over a span of 90 days.
In the 2021 bull run, Bitcoin’s market dominance fell to about 40%, prompting altcoins to surge and yielding remarkable gains for traders. A comparable scenario could elevate altcoin values during this current bull market.
Are We Entering Altcoin Season?
The Altcoin Season Index from Blockchaincenter.net indicates that the conditions for “alt season” are gradually improving. Altcoin season is marked by 75% of the top 50 altcoins outperforming Bitcoin over a 90-day measurement, excluding stablecoins such as Tether or other asset-linked tokens.
The index has risen from 6 on November 5 to 57 as of now. A figure reaching 75 signifies an “altcoin month,” which, if sustained over 90 days, would confirm an altcoin season.
While it hasn’t officially turned into altcoin season yet, the index shows promising upward movement, prompting traders to consider adding various altcoin tokens to their investment portfolios to capitalize on potential profits in the upcoming weeks.
2021 Bull Market Altcoins Poised for Recovery
During the 2021 bull market, altcoins like Avalanche (AVAX), Polkadot (DOT), Fantom (FTM), Internet Computer Protocol (ICP), and Sui Protocol (SUI) showcased significant potential for resurgence in this cycle, backed by technical and on-chain indicators.
The total open interest in USD signifies the value of all active contracts across derivative exchanges for a specific token. Data from Santiment shows a spike in open interest for AVAX, DOT, FTM, ICP, and SUI on November 22, with levels remaining steady and above the average since then.
Trading volumes for these tokens and the activity levels of their addresses are on average or above average, signaling increased interest from crypto traders.
In the past week, AVAX has surged almost 20%, DOT by 33%, FTM has rebounded by 44%, and ICP grew by 18%, whereas SUI experienced an 8% decline. In 2021, these tokens were notable for their utility and beneficial partnerships, increasing value in the ecosystem.
Alongside meme coins, utility and the tokenization of real-world assets have gained traction this cycle, propelling interest in Ethereum alternatives like Avalanche, Polkadot, Fantom, and Sui Protocol among traders.
Key Altcoin Targets for This Cycle
Avalanche’s current daily price chart suggests it could climb by 55%, targeting the psychologically significant $80 level, revisiting highs from March 2024.
The relative strength index (RSI) sits at 69, just below the “overbought” threshold of 70. Additionally, the moving average convergence-divergence (MACD) shows a positive momentum, reinforcing the bullish outlook for AVAX.
Fantom is projected to increase by 16% as it aims to retake its March 2024 high of $1.2292, with a longer-term goal of reaching its previous high of $1.6817 from March 2022. The MACD indicates Fantom’s potential to continue on an upward trajectory, with the three exponential moving averages providing vital support levels for FTM.
Sui Protocol, currently priced at $3.4350, has all potential to reach its 2024 peak of $3.9409, with a target increase of 15.26%. The RSI’s upward trend supports the positive outlook for SUI, particularly as it trades above three exponential moving averages, with the 50-day EMA set at $2.6631 serving as a crucial support level.
ICP appears to be on the mend after breaking its prolonged downtrend on November 22, aiming to reach its 2024 high of $20.9850. The token will face resistance at various Fibonacci retracement levels on its path to this target, set at $13.3870, $15.1800, and $17.3990. The MACD indicator lends support to ICP’s bullish case on the daily chart.
A significant support level is situated at $9.4790 in case of a corrective move in the token’s price.
Should the market favor a revival during the forthcoming altcoin season, Polkadot could see an increase of 50%. It faces its first resistance level at $10.50 and, if surpassed, could climb towards the target of $11.8890, representing a 51% increase from current prices.
Polkadot’s top target remains the March 2022 peak of $23.850, while support is found around $4.7040.
The MACD also supports Polkadot’s positive outlook, although it currently faces a short-term decline over the past week. However, a rebound seems plausible soon.
Traders must remember that the uplift in altcoin prices is contingent upon a further decline in Bitcoin’s dominance alongside the rotation of funds into altcoins. If Bitcoin manages to surpass the $100,000 mark on a daily basis, the anticipated altcoin season may be postponed to early 2025.
Disclaimer: This article is not intended as investment advice. The information and materials here are for educational purposes only.
