Is the altcoin market in for an ‘explosive rally?’ Analysts look at these 3 indicators

The altcoin market is currently in the “belief stage”, which if history repeats itself, may soon turn into an “explosive rally”, as crypto traders closely monitor three indicators for confirmation.

“Altcoins market value is at a level of disbelief right now, followed by an explosive rally in history,” crypto analyst MilkyBull Crypto wrote to his 66,600 X followers on May 11, 2008.

A 24-point drop in the fear and greed index over the past 30 days shows a level of pessimism where investors remain skeptical despite positive market signals. The “Greed” score is currently 56.

This comes with the total altcoin market cap – which does not include the top 10 cryptocurrencies – falling 17.55% over the past 30-days to $264.9 billion, according to TradingView data.

However, it still holds above the $250 billion support level and is “positioning itself for a move higher in the future,” anonymous crypto trader Rect Capital told their 465,300 X followers in a May 12 post.

Traders monitor three indicators on the broader crypto market – the 20-day exponential moving average (EMA), stochastic RSI and Bitcoin dominance – to support their predictions about the direction of the altcoin market.

The EMA is the average price over the period, with more weight in recent periods. If the overall crypto market cap “tests” the EMA20 and “breaks down” on the stochastic RSI – a measure of the relative strength and weakness of the RSI indicator – it could lead to a “convergence period,” anonymous crypto trader Titan of Crypto said in a May 11 post. explained on

Related: Altcoins lower in early summer before bull run – analyst

The Bitcoin dominance chart – measuring Bitcoin's market share relative to the overall crypto market – is one of the oldest but most cited indicators. For traders, it can bring general investor sentiment and appetite in the market.

At the time of publication, Bitcoin dominance is 54.7%, down 0.56% from last week. “A further fall from here could start the altseason,” said anonymous technical analyst Yodada in a May 11 post on X.

Magazine: Buy altcoins now, but sell before mid-2025: Charles Edwards, X Flame Hall

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.