3 signs suggest that the Altcoin era may begin in 2026
The fourth quarter of 2025 turned out to be a challenging period for crypto markets, with most major assets ending the year in negative territory.
Although fear and caution dominate the market, some analysts believe that a rebound may yet materialize. Market experts have identified three key signs that indicate the start of a potential altcoin season in 2026.
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Bullish Divergences Signal Potential Altcoin Reversals
The first key sign is the formation of bullish divergences on the weekly charts of several altcoins. This happens when the price reaches lower lows but indicators like the Relative Strength Index (RSI) make higher lows, weakening the bearish momentum and increasing the possibility of a trend reversal.
Cryptocurrency analyst Michael Van de Pop pointed to this development, citing Optimism, Arbitrum, Near and Avalanche as examples. According to him,
“The weekly timeframe is one of the strongest timeframes building this. This is the year of the entire Web3 industry, not the items.
Altcoin dominance is about to break a multi-year pattern
The second indicator is the Others D index. This tracks the combined market dominance of all cryptocurrencies outside the top 10 by market capitalization.
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In practical terms, it excludes bitcoin, ethereum, other large-cap assets and major stablecoins, giving an idea of the strength of the broader altcoin market. According to analysts, Others.D is about to break out of a multi-year falling wedge.
From an analytical perspective, this is often interpreted as a potentially bullish structure. Analysts generally view a break above the upper trend line as a sign that buyers are regaining control, which may precede a broader trend reversal or a sustained upward move.
According to the data from Bitcoinsensus, Others.D was about 6.88%, which indicates room for expansion if a crash occurs. The analysis puts an upside target of 13.77%.
In a separate post, Bitcoinsensus drew attention to Bitcoin Dominance's recent performance as an indication that the season of altcoins may be approaching.
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Altcoin trading volume increases despite weak prices
The final signal comes from aggregated exchange rate data. According to chain analyst CW8900, the volume of altcoins (excluding the five major cryptocurrencies) is “significantly higher” compared to previous cycles.
“Someone says ‘there is no alt season in this cycle.'” However, on-chain data shows that altcoin trading is more active than in the previous cycle, the analyst said.
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This high activity will continue even as prices fall and retail investors exit. The market regulator said.
“Altcoin dominance has shifted to whales, who will drive up prices to maximize their profits during this bull market.”
Despite these indicators, doubts still abound. Crypto Twitter has low expectations for a broad altcoin rally on the scale seen in previous cycles. Adding to that outlook, BitGate CEO Gracie Chen said in October that the altcoin era won't emerge until 2025 or 2026.
Along with persistent doubts about emerging technical signals, the coming months will see these patterns translate into sustained price momentum or remain unmonitored.
