Breaking resistance can be profitable.

The season of Altcoin may be closer than we think. The Altcoin Season Index has dropped to its lowest level since early September, indicating that this may change.

If momentum picks up and key resistance levels are broken, altcoins could be set for a strong rally. Investors are watching closely in anticipation of a resurgence that could bring significant gains to the altcoin market.

The Altcoin Phase Index is ready for a rebuild.

A chart released by Alfractal suggests that the Altcoin season may be drawing to a close. According to Altcoin Season Index vs Bitcoin Price, the Altcoin Index has reached its lowest price since early September.

The Altcoin Phase Index measures altcoins' percentage of BTC, and is currently showing an interesting trend.

Read more: 11 Cryptos to Add to Your Portfolio Ahead of the Altcoin Phase

A clear pattern emerged during September: As the price of Bitcoin rose, so did the Altcoin Season Index. However, in recent days, the price of BTC has increased from $60,000 to $68,000, while the Altcoin Season Index has fallen below 10%. This shows that, despite Bitcoin's strong rally, altcoins have lagged behind, creating the potential for a significant rebound.

In mid-September, a similar scenario caused the Altcoin Phase Index to jump from less than 5% to over 90% in a matter of days. This could be an opportunity for altcoins to make a strong comeback.

Memes and AI are leading narratives.

Two of the most important narratives for altcoins are currently the leading narratives in mind sharing in the market: AI and memes. Memes lead at 32%, followed by AI at 21.84%. Other notable contributors to the Altcoin season include GameFi and DeFi with 11.39% and 7.52% respectively.

The interest in AI and memes indicates that traders are looking for culturally resonant coins that can generate community enthusiasm and viral growth. GameFi and DeFi, although not dominant, still represent an important part of the altcoin ecosystem.

If these categories are getting more traffic than ETFs, for example, it shows that investors are more inclined towards altcoins than other crypto assets like BTC and ETH. Investors seem to be looking for opportunities beyond the traditional giants of BTC and ETH, supporting the unique features and potential of specific altcoin projects.

The increasing popularity of these narratives may indicate that the market is in an exploratory and experimental phase. The prospect of high returns and potential applications is driving investor enthusiasm for altcoins.

Altcoin season depends on this parameter

The total market value of crypto, excluding BTC and ETH, is currently at $620 billion, down from $777 billion in April, which was the highest level of the year. This decline indicates a contraction in the altcoin market but opens the possibility of a reversal. The total market cap could test resistance at $644 billion, a level it failed to cross between September 28 and September 30.

Breaking this resistance could be the spark needed to spark a new altcoin rally. That could mark the beginning of the altcoin era. Such a situation brings new interest and motivation to altcoins.

Read more: 10 Best Altcoin Exchanges in 2024

If this resistance is broken, the crypto market, excluding BTC and ETH, could see a significant rally, testing market caps around $660 billion, $709 billion, and $740 billion. This represents a 20% increase from the current level, which shows the volatility and opportunity in the altcoin sector.

The market's ability to penetrate these resistance levels indicates a broader shift in mindset. This attracts more investors to altcoins and sets the stage for a powerful rally. This kind of momentum could fuel a more sustained altcoin season as investors look for opportunities beyond BTC and ETH.