Prominent crypto analysts are highlighting a critical juncture for the altcoin market, suggesting that a prolonged period of consolidation could be setting the stage for a significant upward move. According to chart analysis shared by Michaël van de Poppe, the total market capitalization of altcoins (excluding Bitcoin and Ethereum) is currently testing a vital support zone around $878 billion.
The weekly chart indicates that after a strong run through 2024 and early 2025, momentum slowed, pulling the market back to this defined support area. The more critical level to watch on a weekly close is near $784 billion. As long as the market holds above this level, the overall uptrend structure remains intact. A recent bounce off this support was rejected at the weekly 21 moving average, which analysts describe as normal behavior as markets often need time to build strength before reclaiming such key levels.
Analyst AlΞx Wacy points to historical cycles, noting that altcoin dominance is currently near historical lows at just 7%. "Every time Altcoins consolidated this long, they ripped 5-10x. It's happened every cycle," Wacy stated. Historical surges in altcoin dominance occurred in 2017 and 2021, often following periods of low dominance and consolidation.
Experts predict that if the $784B support holds, the market could see more sideways action before another attempt higher, with the next major test being a reclaim of the 21-week MA and a move back toward the $1 trillion area. A failure of support could see a drop to the next demand zone between $650B and $700B. The broader thesis is that with shifting investor sentiment and increasing market liquidity, altcoins could see a potential rally of 150% or more, leading to a significant increase in market share by 2025.
