Analysts Reveal 3 Important Signals that Could Signal the Coming Altcoin Season in 2026

Jakarta, Pintu News – The fourth quarter of 2025 has been a challenging period for the crypto market, with most major assets closing the year with negative performance.

Although fear and caution dominate the market, some analysts still believe that the opportunity for recovery remains. Market experts have identified three key signals that could signal the beginning of the altcoin season in 2026.

Bullish Divergence Hints at Potential Altcoin Trend Reversal

The first major signal is the formation of bullish divergence on the weekly charts of some altcoins. This occurs when the price prints new lows, but technical indicators such as the Relative Strength Index (RSI) form higher lows. This indicates weakening selling pressure (bearish) and increases the likelihood of a trend reversal.

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Crypto analyst Michaël van de Poppe highlights this phenomenon, citing Optimism, Arbitrum, Near, and Avalanche as examples. According to him,

“The weekly timeframe is one of the strongest timeframes to build positions. This is the year of the Web3 industry as a whole. Not commodities.”

Altcoin dominance nears multi-year pattern break point

The second indicator is the Others.D index, which measures the combined market dominance of all cryptocurrencies outside the top 10 by market capitalization.

Practically speaking, this index excludes Bitcoin , Ethereum , other large-cap assets, as well as major stablecoins. This gives an idea of the overall strength of the altcoin market.

According to analysts, the Others.D index is approaching the breakout point of a falling wedge pattern that has been in place for several years. From a technical analysis standpoint, this pattern is often considered a potentially bullish structure.

Analysts generally see a break above the upper trendline as a signal that buyers are starting to take control of the market, which could be the start of a trend reversal or a more sustained price increase.

Based on data from Bitcoinsensus, Others.D dominance is at around 6.88%, suggesting there is still room for upside in case of a breakout. The upside target is said to be at 13.77%.

In a separate post, Bitcoinsensus also highlighted the recent performance of Bitcoin Domination as an early indicator of a possible coming altcoin season.

Read also: Motley Fool Analyst Says Crypto Winter Could Return in 2026

Altcoin Trading Volume Increases Despite Weak Prices

The latest signal comes from trading volume data on centralized exchanges. According to on-chain analyst CW8900, the volume ratio of altcoins (excluding the top five cryptos) is currently “much higher” than in previous cycles.

“Some say, ‘there will be no altcoin season this cycle.’ However, on-chain data shows that altcoin trading is more active than in any previous cycle,” the analyst said.

This high activity persisted even as prices fell and retail investors began to exit the market. The market watcher added:

“The dominance of altcoins has now moved into the hands of whales, who will hoist prices to maximize their profits during this bull market.”

However, although various technical indicators are showing positive signals, skepticism is still widespread. On Crypto Twitter, expectations of a major altcoin rally like in previous cycles are still low.

Adding to that view, Bitget’s CEO, Gracy Chen, stated in October that the altcoin season will likely not happen in 2025 or 2026.

With the emergence of bullish technical signals amidst strong market indecision, the coming months will be decisive as to whether this pattern will actually generate sustained price momentum or is just a signal with no follow-through.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• BeInCrypto. Analysts Identify 3 Indicators That Could Signal an Altcoin Season in 2026. Accessed on January 2, 2025